MetLife to Acquire AIG's Gem (NYSE: MET, NYSE: AIG)

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MetLife Acquires AIG Gem

AIG (NYSE: AIG) shares are looking higher this morning, after the company agreed to sell its jewel. AIG is selling its American Life Insurance Company (ALICO) unit to MetLife (NYSE: MET) for $15.5 billion in cash and stock. AIG is getting $6.8 billion in badly needed cash back. The company will become a 20% stakeholder in MetLife as a result of the deal.

Many are confused today why the company would sell its ALICO gem, but distressed companies can only sell their healthy units for value. This could still be a value creating action for AIG shareholders, and the market agrees with the stock up 4.5% in the premarket. There is some concern that the government influenced AIG might be moving hastily for the sake of government interests, and this is a topic that should be given close inspection. AIG owes the US feds about $132 billion.

It was only a week ago that AIG sold its Asian life insurance business, and ALICO is also an international operation. The sale of American Insurance Assurance Ltd (AIA) (Asia branch), to Britain's Prudential PLC is valued at $35.5 billion, including $25 billion in cash. It seems like the federal government is putting the pressure on AIG to get its money back; there's clearly an agenda. So who comes first, taxpayers or AIG shareholders? Considering the company would not exist without the government bailout, the answer seems clear. AIG was only bailed out due to the "too big to fail" problem and the interconnectedness of the securities markets.

MetLife is up 3.6% in the premarket also, so this may be a good deal all around. The deal allows MetLife to expand internationally, and likely create value this way. Perhaps MetLife is getting a good price too, something I cannot say from this quick-minute update and while lacking the intimate knowledge of the insurance company. Investors should be looking at other AIG units and potential beneficiaries along the same international line.

Today's Market Driving Schedule

There is not one economic report set for release on Monday, however, several important economic celebrities are due to address groups. The first relevant information might come from Brussels, where ECB President Jean-Claude Trichet is set to address the media following his meeting with other central bankers. At 8:30 AM ET, Federal Reserve Governor Kevin Warsh will address the future of the Federal Reserve before the Hedge Fund Institutional Forum in New York. Sheila Bair, Chairwoman of the FDIC, is addressing the National Association for Business Economics. The same conference will see an address of Dougless Elmendorf, Chief of the Congressional Budget Office. He will be discussing the national debt. Finally, Vice President Biden travels to the Middle East on Monday.

Several investors' conferences dot the day. Jefferies (NYSE: JEF) starts its tech conference in New York, with significant representation including Microsoft (Nasdaq: MSFT), Qualcomm (Nasdaq: QCOM), Juniper (Nasdaq: JNPR) and others. Cambridge Energy Research Associates begins its conference in Houston, and Cowen (Nasdaq: COWN) kicks off its Health Care meeting. Look for McDonald's (NYSE MCD) to post February same-store sales results, and Texas Instruments (NYSE: TXN) is due to update investors. Also, PSE&G will meet with analysts Monday.

The day's earnings schedule includes 7 Days Group Holdings (NYSE: SVN), A.C. Moore Arts & Crafts (Nasdaq: ACMR), AM Castle & Co. (NYSE: CAS), AAON, Inc. (Nasdaq: AAON), Acura Pharmaceuticals (OTC: ACUR.OB), AEP Industries (Nasdaq: AEPI), Aeterna Zentaris Inc. (Nasdaq: AEZS), AFC Enterprises, Inc. (Nasdaq: AFCE), Affymax, Inc. (Nasdaq: AFFY), Aldila Inc. (OTC: ALDA.PK), Alexza Pharmaceuticals Inc. (Nasdaq: ALXA), Alfacell Corp. (OTC: ACEL.PK), Altair Nanotechnologies Inc. (Nasdaq: ALTI), American Electric Technologies (Nasdaq: AETI), American Oriental Bioengineering (NYSE: AOB), American Shared Hospital Services (AMEX: AMS), American Vanguard (NYSE: AVD), AMICAS (Nasdaq: AMCS), Ampal-American Israel (Nasdaq: AMPL), AMREP Corp. (NYSE: AXR), Anika Therapeutics (Nasdaq: ANIK), Arabian American Development (Nasdaq: ARSD), Arbinet (Nasdaq: ARBX), Ardea Biosciences, Inc. (Nasdaq: RDEA), Artesian Resources (Nasdaq: ARTNA), Athenahealth, Inc. (Nasdaq: ATHN), ATS Corp. (Nasdaq: ATSC), BioMimetic Therapeutics (Nasdaq: BMTI), Bionovo Inc. (Nasdaq: BNVI), Bitstream (Nasdaq: BITS), Blue Dolphin Energy (Nasdaq: BDCO), Bridgford Foods (Nasdaq: BRID), Brooklyn Federal Bancorp (Nasdaq: BFSB), BSQUARE Corporation (Nasdaq: BSQR), Cadence Pharmaceuticals, Inc. (Nasdaq: CADX), Cadiz, Inc. (Nasdaq: CDZI), Cai International (NYSE: CAP), Callon Petroleum (NYSE: CPE), Camtek (Nasdaq: CAMT), Casey's General Stores (Nasdaq: CASY), CDC Corporation (Nasdaq: CHINA), Chesapeake Utilities (NYSE: CPK), China Mass Media (NYSE: CMM), Coffee Holding (AMEX: JVA), CombinatoRx, Inc. (Nasdaq: CRXX), Comverge Inc. (Nasdaq: COMV), Copernic Inc. (Nasdaq: CNIC), Core-Mark Holding (Nasdaq: CORE), CREDO Petroleum (Nasdaq: CRED), CytRx Corp. (Nasdaq: CYTR), Delta Petroleum (Nasdaq: DPTR), Digital Ally (Nasdaq: DGLY), Discovery Laboratories (Nasdaq: DSCO), Duoyuan Global Water (NYSE: DGW), DXP Enterprises (Nasdaq: DXPE), Ebix Inc. 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(Nasdaq: ICGN), Idera Pharmaceuticals (Nasdaq: IDRA), Immersion Corporation (Nasdaq: IMMR), IncrediMail (Nasdaq: MAIL), Inhibitex, Inc. (Nasdaq: INHX), Interleukin Genetics (AMEX: ILI), Interstate Hotels & Resorts (NYSE: IHR), J. Alexander's (Nasdaq: JAX), Javelin Pharmaceuticals (AMEX: JAV), Jones Soda (Nasdaq: JSDA), K-Tron (Nasdaq: KTII), Keryx Biopharmaceuticals (Nasdaq: KERX), KMG Chemicals (Nasdaq: KMGB), Kronos Worldwide (NYSE: KRO), Lakes Entertainment (Nasdaq: LACO), Lime Energy (Nasdaq: LIME), LSB Industries (NYSE: LXU), Majesco Entertainment (Nasdaq: COOL), MAKO Surgical (Nasdaq: MAKO), Manitex International (Nasdaq: MNTX), Medallion Financial (Nasdaq: TAXI), MedQuist (Nasdaq: MEDQ), Meridian Resource (NYSE: TMR), Michael Baker (AMEX: BKR), Microvision (Nasdaq: MVIS), MiddleBrook Pharmaceuticals (Nasdaq: MBRK), Middlesex Water (Nasdaq: MSEX), MIND C.T.I. Ltd.(Nasdaq: MNDO), ModusLink Global Solutions (Nasdaq: MLNK), MVC Capital, Inc. 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