AIG To Make Good With Bookie In 2009

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Quick: LET'S TALK ABOUT THAT [paying back the federal government]. WHERE ARE YOU IN TERMS OF BEING ON TRACK FOR THIS PLAN? THE BUSINESSES THAT YOU HAVE FOR SALE, DO YOU HAVE PEOPLE COMING UP TO YOU WITH STRONG BIDS FOR SOME OF THE BUSINESSES?
Liddy: WE DO. WE ARE ENCOURAGED BY THE LEVEL OF INTEREST. WE ANNOUNCED THIS MORNING THE SELL OF HARTFORD STEAM BOILER.
Kernen: FOR HOW MUCH?
Liddy: IN TOTAL IT IS ABOUT $825 MILLION IN VALUE. THE BUSINESSES THAT ARE SINGULAR IN NATURE OR GENERALLY ONLY DEALING WITH ONE COUNTRY, THEY WILL GET SOLD FIRST. AS YOU MOVE UPSTREAM AND GET TO THE LARGEST BUSINESSES, AND THOSE WHO DO BUSINESS IN TEN OR 15 OR 20 COUNTRIES, THEY TAKE MORE FROM A DUE DILIGENCE STANDPOINT. VERY MUCH LIKE WE WERE, WE WISH THE CAPITAL MARKETS WERE MORE COOPERATIVE.
Kernen: THE JOURNAL SAYS IT WAS GOING TO BE SOLD BETWEEN $1.2 and $1.5 AND YOU PAID $1.2. YOU WOULD BE LUCKY TO GET TO THAT. IS THAT AND APPLES TO APPLES COMPARISON ON THE $825? ARE YOU LOSING OVER $300 MILLION ON THE SALE?
Liddy: IT IS MORE COMPLICATED THAN YOU CAN IMAGINE.


Quick: YOU SAY THAT YOU BELIEVE YOU CAN PAY BACK THE FEDERAL GOVERNMENT FOR ALL THE TAXPAYER MONEY THAT YOU BORROWED. WHEN DO YOU THINK, WHEN IS YOUR BEST ESTIMATE TO DO THAT?
Liddy: WE WOULD LIKE TO DO THAT IN 2009.AGAIN, ONE THING WITH FINANCIAL SERVICE COMPANIES IS THEY CAN ATROPHY IF YOU ARE NOT CAREFUL.WE THINK IT IS IMPORTANT THAT THE BUSINESS UNITS TO BE SOLD GET SOLD FOR AS MUCH VALUE AS WE CAN, AND WE PAY BACK THE FEDERAL GOVERNMENT. THE SOONER WE DO THAT, THE REMAINING BUSINESSES WILL BE BETTER OFF AND BUSINESSES SOLD WILL BE BETTER OFF IN THE HANDS OF NEW OWNERS.

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