Business
American International Group Inc (N:AIG) is nearing a deal to sell its mortgage-guaranty unit to Arch Capital Group Ltd (O:ACGL) for about $3.4 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The companies could strike a deal as soon as early this week, the Journal reported, although it added that the talks could still fall apart.
AIG declined to comment, while Arch Capital was not immediately available for comment.
AIG said in January it would spin off its mortgage insurance unit, cut jobs and sell its broker-dealer network as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn.
Icahn, whose representative secured a board seat at AIG earlier this year, has been pushing the insurer to split itself into three smaller companies as a way for the company to shed its designation as a Systemically Important Financial Institution (SIFI), which would free the company from having to comply with stricter capital requirements.
Shares of AIG and Arch Capital were up marginally in afternoon trading.
Source by Reuters
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