Chuan AIG will be split into three companies

Foreign media quoted informed sources said, AIG is working with the United States Government on a major restructuring plan for discussion, according to the plan, AIG will be broken into at least three government-controlled sector.

An internal reorganization plan will be the described as "under control of the spin-off", once this plan implemented, would mean that the AIG Insurance Group as an independent global declaration of the end of history. At the same time, the person said, if, like Citigroup and other troubled financial groups have been incorporated into the government under the control, it may be to split these groups templates.

Under the plan, the government will present the United States held by AIG 80% stake in three subsidiaries into substantial equity, separately for each of the three subsidiaries: AIG Asian business, the international life business and personal insurance business the United States. Not only that, by AIG and other business of non-performing assets comprised of the first four companies also have the possibility of setting up.

In exchange, the United States Government will relax the criteria for AIG 5-year 60 billion U.S. dollars loan terms, or even remove one of the majority of one and 40 billion U.S. dollars worth of preferred shares converted into ordinary shares.

Reported that, if put into practice the plan, AIG will continue to be temporarily a holding company. But sources said that if the Government decides to sell the three companies, or listed separately in order to compensate the taxpayer investment in this insurance, then AIG will no longer exist.

Current AIG executives, the U.S. Treasury, the Fed and the credit rating agencies are still negotiating on the rescue plan.

AIG may be next Monday announced the restructuring plan, the market is expected that the Group will announce fourth-quarter loss of 60 billion U.S. dollars.