American International Group acquires American General Corporation

American International Group acquired American General Corporation for approximately $23 billion in AIG common stock; $46.00 per American General share, subject to a collar mechanism, structured as a tax-free reorganization and pooling of interests, a transaction completed in August 2001, structured as all-stock ($46.00 per share in AIG common stock, subject to a collar).

American General Corporation operates in Life insurance, retirement savings/annuities and consumer finance, is based in Houston, Texas, USA. American General Corporation (NYSE: AGC), a Houston-based leader in U.S. life insurance, retirement savings products and consumer finance, agreed to merge with AIG in an all-stock deal valuing it at about $23 billion. To reach the agreement, American General simultaneously terminated a prior merger agreement with Prudential plc and paid Prudential a $600 million termination fee. The merger was completed on August 29, 2001 when Washington Acquisition Corporation, a wholly owned AIG subsidiary, merged into American General. It remains one of the largest U.S. insurance mergers ever and dramatically expanded AIG's domestic life and retirement platform.

AIG said American General's leading positions in life insurance, retirement savings and consumer finance would enhance its business portfolio in both products and distribution, significantly strengthen its position in the domestic life insurance market, and complement AIG's existing retirement-savings business as demand for retirement products grew.

Leading U.S. positions in life insurance, retirement savings/annuities and consumer finance with distribution that complemented AIG's domestic footprint. Domestic life insurance and retirement savings operations; consumer finance

Advisory firms were not disclosed for this transaction.