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Wednesday, March 18, 2009
For Sale: AIG Headquarters
Matt Egan
FOXBusiness
Apparently, American International Group (AIG) is selling more on Wednesday than a defense of its decision to hand out $165 million in bonuses last year.
As the bailed-out insurer pushes back against irate lawmakers on Capitol Hill, it also confirmed to FOX Business it has decided to explore unloading its 66-story Manhattan headquarters, which could fetch it up to $100 million.
“This is part of the divestiture strategy and an effort to maximize operating efficiency,” said Joe Norton, an AIG spokesman.
In addition to its headquarters at 70 Pine Street in Manhattan, AIG is also looking to unload another building located at 72 Wall St. Constructed in 1932, the buildings have been owned and operated by AIG since the 1970s.
According to the New York Post, which first reported the sales effort, the headquarters could fetch as much as $100 million, down from $320 million before the real-estate bust.
“Market interest received will help determine the best course of action,” said Norton.
Real estate brokers Darcy Stacom and Bill Shanahan sent out an email to possible buyers on Monday boasting of “breathtaking views” from the site, according to the Post.
Stacom and Shanahan are in charge of the investment sales group at real-estate firm CB Richard Ellis.
While AIG is weighing a sale of its headquarters, its CEO, Edward Liddy, was being grilled by lawmakers Wednesday who say they are “outraged” by the company’s compensation practices. Even though the insurer has received $180 billion in bailout cash, AIG paid execs $165 million in bonuses for 2008.
President Barack Obama said he has directed Treasury Secretary Timothy Geithner to explore “every possible avenue” to recoup the bonuses.
Liddy, who only joined the insurer after its bailout, defended the bonuses Wednesday. He told lawmakers in prepared remarks the “cold realities of competition” forced AIG to pay the compensation.
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