An American International Group Inc. (AIG) unit completed the
sale of its energy and infrastructure investment assets Tuesday,
realizing net processes of over $1.9 billion.
The insurance giant's AIG Financial Product Corp. completed the
sale of its lease equity interest in the Bruce Mansfield power
generation plant operated by FirstEnergy Corp. (FE). The sale was
part of the ongoing process to wind down AIG Financial Products'
business.
AIG, 80%-owned by the government following its rescue of the
company last September, has been actively working to restructure
its operations by selling off various assets and businesses. AIG
and its units have reached agreement or closed over 20 deals in the
past several months.
The Mansfield sale follows recent closings on a tax equity
interest in the Stanton wind farm in Texas and two lease equity
interests in portfolios of rail cars operated by Burlington
Northern Santa Fe Corp. (BNI).
On Friday, AIG reported it returned to the black after six
straight quarters of losses as the second quarter's results were
absent major write-downs which had been pressuring the company. The
company said it saw stabilization in some of its businesses but
continued weakness in its core insurance operations.
Shares were recently down 12% to $25.25 amid a broad market
decline, led by the financial sector, as investors grow cautious
ahead of the Federal Reserve's policy announcement Wednesday.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
