AIG Says 'Nyet' to Russia
(Update: Revises stock price to reflect the market close.)
Continuing the process of divesting itself from all four corners of the globe,
American International Group
(AIG) - Get Report
is saying "nyet" to Russia.
The insurer said it will sell 98% of its shares in its consumer-finance operations in Russia to Banque PSA Finance SA, a subsidiary of PSA Peugeot Citroën Group.
Banque PSA Finance also holds an option, not exercisable until March 2011, to buy the remaining 2%. Terms of the deal were not disclosed.
The Russian unit, OOO AIG Bank, was created last June and has a dozen employees.
This is yet another move by AIG to sell off assets to repay the massive $180 billion government bailout. Last week the company said it plans to
spin off two life-insurance businesses
as part of a plan to repay $25 billion of debt.
Other pieces up for grabs include:
and
International Lease Finance
.
Shares in the company closed Monday trading down almost 9%, to finish at $1.33.
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