MetLife to Buy AIG’s Alico Unit for $15.5 Billion

in Gold Gold Investing Gold Investment by admin — March 8, 2010 7:07 am | no comments

Insurance giant MetLife, Inc. ( MET ) said Monday that it will buy American International Group ( AIG )’s overseas life and health insurance unit, Alico, for $15.5 billion in cash and stock. The move comes amid AIG’s efforts to repay governmental bailout loans, as all of the funds generated from the sale will go directly to the federal government. MetLife will pay $6.8 billion in cash for Alico, while the remainder of the sale price will be paid in stock and equity units. Just a week ago, AIG announced it would sell its Asia-based life insurance group, AIA Group, to Prudential PLC for $35.5 billion. The latest deal will git MetLife a bigger presence in Japan, Europe, Latin America, and the Middle East. MetLife shares rose $1.48, or +3.8%, in premarket trading Monday. The Bottom Line We recently removed shares of MET from our “recommended” list on Oct.1, when the stock was trading at $38.07. The company has a 1.90% dividend yield, based on Friday’s closing stock price of $38.32. The stock has technical support in the $32-$35 price area. If the shares can firm up, we see overhead resistance around the $41 price level. We would remain on the sidelines for now. MetLife, Inc. ( MET ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .