Bidding war possible for big U.S. insurer

Wednesday, April 4, 2001 | 10:56 a.m.

NEW YORK -- Global insurance giant American International Group Inc. of New York is offering $23 billion in stock for American General Corp., attempting to outbid Prudential PLC for control of the Houston-based insurance company.

However, London-based Prudential said today that its plan to acquire American General for $20 billion "remains in full force and effect," raising the possibility of a trans-Atlantic bidding war.

AIG Chairman and CEO Maurice Greenberg said in a statement that he hopes to talk soon with American General officials about the proposal, which values the company at $46 per share.

The offer represents a premium of 25 percent from American General's closing stock price of $36.80 Tuesday.

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