American International Group Inc., parent of Hartford Steam Boiler Inspection and Insurance, is preparing to ask the Federal Reserve to relax rules on how bidders pay for assets as it tries to repay a $60 billion loan, according to a published report today.
New York-based AIG wants to boost competition for the assets by allowing bidders to pay using a greater portion of shares, or through installments, the Financial Times newspaper reported, citing people close to the situation.
Under the current plan, AIG can only sell assets to bidders paying at least 90 percent of the price in cash. The company has agreed to sell Hartford-based Hartford Steam to Germany’s Munich Re for $742 million cash.
An AIG spokesman could not be reached for immediate comment.
AIG, once the world’s largest insurer, is in the process of liquidating assets to repay the loan, which is part of a $150 billion bailout from the federal government. (AP)
