(Updated to account for AIG's stock-price movement.)
NEW YORK (
has shelved plans for an initial public offering of its Chartis property-and-casualty unit, according to several reports.
AIG, which still owes the U.S. government about $182 billion in bailout money, was hoping to spin-off Chartis as a means to raise cash.
But AIG's chief, Robert Benmosche, said he values Chartis as a core business and prefers to build on the division over time, instead of selling it off in pieces,
This isn't the first time Benmosche has halted an auction since he joined the company. He also shelved the planned sale of two Japanese life insurers and a U.S. investment advisory unit.
Benmosche has opted to wait out the slumping markets in hopes that AIG's sprawling divisions will bounce back.
by more than 10% on the news; they were trading recently at $30.93, up $2.88, on heavy volume.
-- Reported by Andrea Tse in New York
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