Bailed-out insurer American International Group Inc (NYSE:AIG) sold its entire $500 million stake in private equity firm Blackstone Group LP (NYSE:BX) on Friday, according to a source familiar with the situation.
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AIG, which is majority owned by the U.S. government after it was bailed out during the financial crisis of 2008, had acquired the stake before Blackstone went public in 2007, the source said.
The sale is part of AIG's ongoing effort to monetize non-core assets, reduce risk and deleverage, another source said.
AIG and Blackstone declined to comment.
Blackstone's shares fell 1.9% to $15.43 during morning trading on the New York Stock Exchange, while AIG's shares fell 0.1% to $29.42.