MetLife, AIG Jump; Alico Deal Could Come Sunday

The Wall Street Journal’s Serena Ng, Leslie Scism and Jeffrey McCracken this afternoon report a deal for MetLife (MET) to buy AIG’s (AIG) American Life Insurance unit, or Alico, could come this Sunday, after the IRS told both companies that it will not require them to withhold taxes on income it distributes to annuity policy holders overseas.

That issue was a sticking point for MET in going ahead with a deal, the authors write citing “people familiar.”

The rumored price for Alico is still $15 billion, as it has been for weeks now, with $7 billion of cash and $8 billion in a mix of common and preferred stock.

MET stock is up $1.31, or 4%, at $38.06, while AIG is up $1.83, or 7%, at $26.71.

For background, consider reading “Met’s Interest in AIG Is a Route Out of U.S. Insurance Doldrums,” Feb. 12.