Shares of American International Group (AIG) spiked more than a dollar, at $23.23, after a report by Reuters this afternoon that MetLife (MET), the largest publicly traded U.S. life insurer, may pay AIG as much as $15 billion for its American Life Insurance Co. (Alico).
MetLife, notes Reuters, plans to pay roughly $8 billion of the purchase price in stock and the rest in cash.
Banks including JPMorgan Chase (JPM), Bank of America (BAC), Deutsche Bank AG (DB) and Credit Suisse Group may give MetLife a $5 billion bridge loan for the transaction, according to Bloomberg, which said a deal could be struck as soon as February 11.
Wilmington, Delaware-based Alico was founded in 1921. The company sells life insurance and retirement products to 19 million customers in 54 countries.
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