Wednesday, February 25, 2009

AIG may abandon asset sales plan: report

(Reuters) – American International Group Inc may scrap a plan to repay a $60 billion U.S. government loan by selling businesses, after failing to find enough promising bidders, Bloomberg said, citing people with knowledge of the matter.

AIG Chief Executive Edward Liddy, who took charge in September and unveiled the strategy the following month, has concluded it will not work, the people told the news agency on condition of anonymity.

AIG is proposing additional ways to reduce the company's debt to the U.S. government, including handing over stakes in some operations directly to the government, a person told the news agency.

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