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[AliAngel]

AIG may pop in the am.

China's CIC in talks for 49% stake in AIG unit: Nikkei

By Chris Oliver
Last update: 9:00 p.m. EST Nov. 20, 2008Comments: 2
HONG KONG (MarketWatch) -- China's sovereign wealth fund, China Investment Corp. (CIC), is leading a consortium of mainland insurance companies in an effort to acquire up to 49% of American Life Insurance Co. (Alico), a unit of the troubled American International Group (AIG:American International Group, IncAIG 1.44, -0.12, -7.7%) , according to a Japanese media report. The CIC-led consortium is being treated as a preferential bidder and a deadline for the end of the year has been set on the talks, the Nikkei newspaper reported in its Friday morning edition, citing sources familiar with the matter. If CIC gets the green light for the stake purchase, it could open a pathway for additional investments and joint business participation between Chinese insurers and AIG, the report said. AIG is considering a stake sale with the caveat that it retains control of more than 50% of the voting rights in the firm. The 49% stake in Alico may cost the Chinese insurers between $500 billion yen ($5.3 billion) to 1 trillion yen, the report said.