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AIG likely to sell 15 businesses to repay US government loan

The American International Group is likely to sell 15 of its businesses to repay the $85 billion US government rescue loan.

According to reports, American International Group (AIG) may sell its aircraft leasing business, International Lease Finance, which is expected to fetch nearly $10 billion. It may also sell its 59% stake in the reinsurer, Transatlantic Holdings and its 50% stake in London City Airport to its partners, to raise cash to repay the loan. If the loan is not repaid, the US government has an option to take almost 80% stake in the company.

Bloomberg has cited Rupa Haria, the company’s spokesperson, as saying that the Global Infrastructure Partners, a private-equity fund created by Credit Suisse Group and General Electric, has agreed to buy AIG’s share in the airport. The transaction is expected to be completed in October 2008.