AIG more likely to acquire than be acquired, says Citi

Citi says AIG (AIG) is more likely to be an acquirer than be acquired. The company would not be advantaged by combining with another large insurer, the analyst tells investors in a research note. Citi believes integration and revenue “dyssynergies” would likely “overwhelm” any potential cost savings from a large-scale transaction. The firm expects AIG to continue to acquire companies and keeps a Neutral rating on the shares with an $85 price target. On December 10, Insurance Insider reported that Chubb (CB) made informal takeover approach to AIG.