American International Group acquired SunAmerica Inc. for approximately $18 billion in AIG common stock; exchange ratio of 0.855 AIG shares per SunAmerica share, structured as a tax-free reorganization and pooling of interests, a transaction announced in August 1998, structured as all-stock (0.855 AIG shares per SunAmerica share).
SunAmerica Inc. operates in Retirement savings and asset-accumulation products, is based in Los Angeles, California, USA. SunAmerica Inc. (NYSE/PSE: SAI), a Los Angeles-based leader in retirement savings and asset-accumulation products led by Chairman/CEO Eli Broad, agreed to merge into AIG in an all-stock transaction valued at about $18 billion. SunAmerica shareholders received 0.855 AIG shares per share, and SunAmerica was to keep its management, name and Los Angeles headquarters within AIG. Eli Broad and Vice Chairman Jay Wintrob were expected to join AIG's board. The parties expected the deal to close in late 1998 or early 1999; it was completed effective January 1, 1999. The deal marked AIG's decisive entry into the U.S. retirement-savings market.
AIG said SunAmerica was an outstanding company and leading participant in asset-accumulation products for both the retirement and pre-retirement markets, and that the transaction positioned AIG in a major growth market as Americans increasingly saved for retirement.
A leading U.S. asset-accumulation and annuity franchise with strong distribution in the fast-growing retirement-savings market. Operated as a separate company (name, management and Los Angeles headquarters retained) within AIG; retirement-savings operations
AIG is very excited about the agreement we have reached with SunAmerica, an outstanding company and leading participant in asset accumulation products for both the retirement and pre-retirement markets. This transaction positions AIG in a major market.M.R. Greenberg, Chairman, AIG
Advisory firms were not disclosed for this transaction.