Business negotiations drag over US Treasury's AIG investment
Business negotiations are underway between AIG and the US treasury
Great negotiation skills will be required as the US Treasury and the American International Group (AIG) seek to move their seperate ways in the coming years, it has been suggested.
According to the Wall Street Journal, talks between federal and company negotiators are currently underway, in an attempt to free AIG from government custody sooner than had originally been planned.
The US Treasury and the New York Federal Reserve invested billions in the US insurance giant in a bid to stop it collapsing under the weight of the recession.
AIG is currently working on plans to repay this money as it seeks to reclaim its independence.
If proposals for the Treasury to exchange $49.1 billion of preferred shares for common stock go ahead, some analysts believe that the government could actually make a profit on its investment.
However, protracted negotiations will likely be required before the authorities are able to sell the 92 per cent stake in AIG that they will have after the stock conversion takes place.