A consortium led by sovereign wealth fund China Investment Corp. is negotiating with insurer
American International Group
to acquire a stake of up to 49% in unit American Life Insurance, also known as Alico, reports Japan's
The acquisition would cost about $5 billion to almost $11 billion, the newspaper reported.
AIG is holding preferential talks with the CIC-led consortium, which also includes Chinese insurance companies, with the end of the year as a deadline,
Alico has operations in more than 55 countries. Alico Japan accounts for 60% to 70% of the company's entire insurance premium revenue.
In September, the U.S. government loaned AIG $85 billion to help it stave off bankruptcy. But the loan increased to more than $150 billion after it was determined the giant insurer needed more funds.
AIG has said it plans to sell everything except its U.S. property and casualty business, foreign general insurance and an ownership interest in foreign life operations to raise funds, according to a
This article was written by a staff member of TheStreet.com.