AIG Divorce ASAP ohh no

S&P MAINTAINS HOLD RECOMMENDATION ON SHARES OF AMERICAN INTERNATIONAL GROUP (AIG; .55):

According to an unconfirmed report in the Financial Times, AIG and U.S. authorities are in discussions to execute a "controlled breakup" of AIG under which the government would swap its 79.9% equity stake in AIG for large stakes in AIG's foreign life, Asian operations and U.S. personal lines units in exchange for relaxed loan terms. Under this proposal, the remaining assets (presumably including the commercial lines business) would remain with the holding company. We keep our $0.50 target price, which is our lowest available target price. -C. Seifert