By Matt Egan
FOXBusiness
American International Group (AIG) is halting plans to spin off its property-casualty business Chartis because it considers the unit to be a core holding, according to a published report.
AIG, which owes the U.S. $182.5 billion for emergency loans made during the financial crisis, had been eyeing an initial public offering for Chartis as a way to raise cash and repay its debt. However, CEO Robert Benmosche, who joined AIG in August, told employees he considers the business a core holding, Bloomberg News reported.
The decision to shelve the Chartis IPO comes after Benmosche halted at least two other auctions.
Chartis had been prepping for the spin off as the company met with financial advisers and lawyers about an IPO during the first half of 2009 and assembled its own senior management team and public-relations staff, Bloomberg reported. But preparations stopped after Benmosche took over.
Shares of AIG inched higher Tuesday in the premarkets, climbing to $28.14 after closing at $28.06 a day ago.
www.foxbusiness.com/story/markets/...helves-chartis-ipo-plans/