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Dealwatch: Clyde & Co and SullCrom win roles on Arch Capital’s £3.4bn bid for AIG unit

Clyde & Co, Sullivan & Cromwell and Cahill Gordon & Reindel have won roles advising on Arch Capital Group’s bid to acquire American International Group’s (AIG) mortgage-guarantee unit for $3.4bn, in a deal which would create the largest private mortgage insurer in the world.

Insurer AIG struck a deal with Bermuda-based Arch Capital after the company revealed earlier this year it would spin off its mortgage insurance business which includes United Guaranty Corporation (UGC) and AIG United Guaranty Insurance (Asia) Limited. The deal is expected to close between late 2016 and early 2017.

Both Clyde & Co and Cahill Gordon & Reindel are advising Arch Capital while long-time adviser Sullivan & Cromwell is guiding AIG through the deal.

In the US, Sullivan & Cromwell’s team included corporate partners Robert DeLaMater and Jared Fishman. In the City London-based partners Eric Wang and Juan Rodriguez also advised AIG for Sullivan & Cromwell.

Clyde & Co fielded an international team of partners including New York-based partner Vikram Sidhu and Hong Kong’s Joyce Chan.

Sullivan & Cromwell acted for AIG during the financial crisis in connection with its $85bn emergency funding plan with the US Federal Reserve and subsequent $30bn equity capital commitment facility.

The deal is a significant one for Clyde & Co, which earlier this year advised global metals group Liberty House in its bid to acquire Tata Steel’s UK assets.