American International Group Inc. has completed the acquisition of a majority stake in UTStarcom Inc.'s personal communications division, in a transaction valued at approximately $240 million.
The 193-employee division becomes a separate, stand-alone company as part of AIG Vantage Capital, a unit of AIG Investments. Current management will continue running the operation and will partly own the new company, the company said in a statement.
The unit distributes handsets and accessories made by itself and others to cell-phone companies in North America.
AIG and Alameda, Calif.-based UTStarcom announced the deal last week (BestWire, July 3, 2008).
AIG currently has a Bests Financial Strength Rating of A+ (Superior) with a negative outlook.
Shares of AIG were selling at $26.02 in morning trading on July 8, up 0.16% from the previous close
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