Franklin Drops Bid for AIG Unit: Reports

Franklin Templeton Investments, the lead bidder for American International Group's (AIG Quote) asset-management unit, has dropped out, reports say.

The unit of Franklin Resources(BEN Quote), and its lead adviser in the buyout effort, Charles E. "Chuck" Johnson, a former executive of the mutual-fund company, dropped out over the weekend from two-month exclusive talks to buy AIG Investments. Irreconcilable strategic differences within the bidding group were said to be the reason, the Wall Street Journal reports, citing people familiar with the matter.

Franklin Templeton's bidding partners might seek a deal without the mutual-fund company, potentially with a new partner, the Journal reports. ...