An investment management firm has arranged for funds and affiliates to buy 80% of American General Finance Inc. from American International Group Inc. (NYSE:AIG).
Fortress Investment Group L.L.C., New York (NYSE:FIG), hopes to close on the deal by March 31, 2011, according to AIG, New York, and Fortress.
AIG says it expects to record a $1.9 billion loss on the deal, eliminate $17 billion in debt from its balance sheet, and emerge with a 20% stake in the finance company.
American General Finance, Evansville, Ind., was founded in 1920. It sells loans, retail financing and other credit-related services in the United States and the United Kingdom.
