In the first major asset sale under the watch of new CEO Robert Benmosche, American International Group Inc. agreed over the holiday weekend to sell a part of its asset management business to Pacific Century Group for about $500 million.

Continuing to sell off parts of the conglomerate in an effort to repay the $180 billion in taxpayer funds it received as a result of the government bailout, AIG says it will pocket $300 million in cash at closing as well as future considerations that include a performance note and continuing share of carried interest.

Consistent with Benmosche's position of receiving fair market value for the insurer's assets and not simply having a fire sale for the sake of refilling the coffers, the deal with Pacific Century Group was done at a price that's competitive with other recent comparable asset management transactions, a source close to the matter told Reuters.

Bridge Partners LP, a company owned by Hong Kong-based Pacific Century Group will buy the unit, which operates in 32 countries and manages about $88.7 billion of investments of institutional and retail clients.

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