AIG finds hope in MetLife
AIG (NYSE:AIG) is close to banking $15 billion from MetLife (NYSE:MET) foreign life insurance that would give AIG almost 20% of MetLife.
On Friday AIG shares closed at $28.08 and MetLife finished the day at $38.92. (Reuters.com) MetLife's board was expected to meet later on Sunday to weigh the transaction, according to the sources.
MetLife is expected to pay AIG about $7 billion in cash and the rest in equity, these sources said.
The equity component of the purchase price includes about $3 billion in convertible preferred, and the rest in common stock and temporary securities similar to common shares, the sources said.
AIG will hold below 20 percent of MetLife as a result at closing, a stake that is expected to increase to above 20 percent -- but below 25 percent -- later, after MetLife's shareholders approve the conversion of the temporary securities to common stock, these sources said.