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AIG buys rival

Thursday 20 August 1998 18:02 EDT
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AMERICAN International Group, the biggest US financial-services company, agreed to buy SunAmerica for $18bn in stock to expand in the US retirement-savings business. New York-based AIG will pay 0.855 shares for each SunAmerica share, valuing the Los Angeles-based insurer at a 26 per cent premium to its closing price yesterday of $64.25.

The purchase marks AIG chairman and chief executive Maurice Greenberg's biggest step into the US consumer market.

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