May 11, 2009 12:16 PM
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AIG Makes Another Divestiture: Confirms Sale of Otemachi Building
(MoneyWatch) Sources close to embattled insurer American International Group confirmed that it has just sold its downtown Tokyo headquarters, the Otemachi Building.
Having previously said that it was trying to sell the building, there reportedly were at least two potential bidders, with the likely buyer being a Japanese insurance company. The price is expected to be about $1 billion, according to recent publicity.
AIG is trying to sell assets to pay off the $170 billion borrowed from the federal government's TARP (Troubled Asset Relief Program). The company has already sold, among other parts, its direct insurer 21st Century, which competes with GEICO, a unit of Berkshire Hathaway.
The sale should help AIG CEO Edward Liddy in his testimony before the U.S. House Oversight Committee on Wednesday, which is likely to grill him on how quickly AIG can get out from under its obligation to taxpayers.
AIG recently reported a first quarter loss of $4.3 billion, down from a more than $60 billion loss in the fourth quarter.
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Having previously said that it was trying to sell the building, there reportedly were at least two potential bidders, with the likely buyer being a Japanese insurance company. The price is expected to be about $1 billion, according to recent publicity.
AIG is trying to sell assets to pay off the $170 billion borrowed from the federal government's TARP (Troubled Asset Relief Program). The company has already sold, among other parts, its direct insurer 21st Century, which competes with GEICO, a unit of Berkshire Hathaway.The sale should help AIG CEO Edward Liddy in his testimony before the U.S. House Oversight Committee on Wednesday, which is likely to grill him on how quickly AIG can get out from under its obligation to taxpayers.
AIG recently reported a first quarter loss of $4.3 billion, down from a more than $60 billion loss in the fourth quarter.
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MoneyWatch Poll: How Has the Financial Crisis Affected You?
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