AIG puts rail-car unit up for sale

Bailed-out insurer AIG has put its rail-car unit up for sale, though trade buyers are complaining of being excluded from the auction, the Wall Street Journal reported.

The paper said the assets of AIG Rail Services have a book value of about US$660 million but it was not clear how much American International Group was seeking for the business. AIG Rail, started in 2005, leases tank and freight cars.

The Journal also quoted the chief executive of competitor GATX Corp as saying his company and other potential strategic buyers have been excluded from the auction. GATX CEO Brian Kenney told the paper he was interested in the assets.

An AIG spokesman declined to comment on the sale but confirmed a comment to the Journal that the company pursues its asset sales with the goal of repaying taxpayers for its bailout. It still owes around $100 billion.

Bank of America Corp is handling the sale for AIG, the paper reported.
(Source:www.cargonewsasia.com)