AIG holdings in Indian companies

U.S. government agreed to lend 2-year loan worth $85 bn to AIG for 79.9% stake in the co. AIG stock ends down 21% at $ 3.75; recovers 200% from days low of $ 1.25. AIG's credit rating was downgraded by 3 major rating agencies. Below is the list of stocks held by AIG in Indian companies as on 30/06/2008: Co_Name Holder's Name % Stake No of Shares AIA Engg AIG Global Investment Corporation 1.3 245005 Nucleus Software AIG Global Investment Corporation 1.58 509864 Sun Pharma Advan AIG Global Investment Corporation Asia Ltd 2.39 4956986 Federal Bank AIG Global Investment Partners LP 1 1708472 Mindtree Ltd AIG Offshore Systems Service Inc 3.27 1240167 Ipca Labs AIG Trustee Company India Pvt Ltd 1.4 350000 Bharati Shipyard Aig Trustee Company India Pvt Ltd 1.14 314145 Gayatri Projects AIG Trustee Company India Pvt Ltd 2.07 209609 Below is the list of stocks held by Tata AIG in Indian companies as on 30/06/2008: Co_Name Holder's Name % Stake No of Shares Elecon Engg.Co Tata Aig LIfe Insurance Co Ltd 1.29 1197679 Action Construct Tata AIG Life Insurance Company Ltd 1.97 1773212 EMCO Tata AIG Life Insurance Company Ltd 1.52 892294 McNally Bharat Tata AIG Life Insurance Company Ltd 2.78 865508 Tata Motors Tata AIG Life Insurance Company Ltd 0 13000 Tata Steel Tata AIG Life Insurance Company Ltd 0 18800 Voltas Tata AIG Life Insurance Company Ltd 0.23 772875 Zee News TATA AIG Life Insurance Company Ltd 2 4789586 Source: Capitaline AIG will get an $ 85 billion loan from the Federal Government in exchange for an 80% stake in itself, sources have told CNBC. Sources said the loan, which will allow AIG to avoid bankruptcy, will be secured and include incentives for quick asset-sales by AIG. The deal severely dilutes existing shares of the company. Management of the firm will be fired as part of the deal. The company is scrambling to raise capital to stay afloat after being hit with credit rating agencies downgrades. The Fed's financial aid for the troubled insurer marks a reversal of its decision on Monday to refuse a bridge loan to AIG. Nouriel Roubini, Chairman of RGE Monitor said that it should've been properly regulated. An insurance company takes premium from people who've bought insurance and instead of investing it in safe instruments like bonds, starts guaranteeing CDS and other toxic instruments. We are in a situation where losses are being socialized and profits privatized. Michael Sheldon of RDM Financial Group said that this is probably the right action to bail out AIG. Bailout may not be the right word. Bridge loan is the proper word. If we look at AIG's tentacles, they reach around the world. They touch all kinds of sectors and companies around the world. If it was left to fail, the effect of financial markets would be bad. Meanwhile sources say, Tata AIG Life and Tata AIG General, AIG's largest business operations in India, have more than required solvency margins in Indian insurance JVs. Tata AIG insurance JVs together has nearly Rs 1500 crores in capital. Tata AIG policyholders & employees are safe & secure. Solvency in life insurance at 305%; general insurance at 176%. IRDA guidelines requires insurance business maintain 150% solvency margins. Tata AIG policyholders & employees are safe & secure. Insurance business fully funded as of now; no risk to business & policyholders. India insurance JV's employ nearly 9000 employees & there is no risk to staff. AIG India watching US situation on other businesses like PE, Asset management, Cons finance. AIG aircraft leasing business has 19-20 leased aircrafts with indian operations. AIG systems solutions, its captive bpo employs nearly 1100 employees. All AIG businesses in India continue to grow at a robust rate.