NU Online News Service, May 7, 1:59 p.m. EDT

American International Group said its AIG Financial ProductsCorp. has sold its commodity index business to UBS Investment Bankfor $150 million, based on future earnings.

The New York-based insurer said its sale of the commodity indexbusiness to the UBS equities business includes the rights to theDow Jones-AIG Commodity Index (DJ-AIGCI).

The commodity index, which is comprised of commodity index swapsand funded notes based on the benchmark DJ-AIGCI, will be renamedDow Jones-UBS Commodity Indexes, UBS said.

UBS said the deal closed on May 6. It will pay $15 million atthe time of closing plus payments of up to $135 million over thefollowing 18 months based on future earning of the purchasedbusiness.

According to AIG, approximately 13 AIG employees from the unitinvolved with the commodity index business will join UBS InvestmentBank in connection with the sale.

"With this sale, AIG has realized value from the sale of aprofitable business unit of AIGFP in connection with the ongoingunwind of AIGFP's businesses and portfolios," Gerry Pasciucco,AIG-FP chief operating officer said in a statement.

"This acquisition allows us to expand our leading equitiesbusiness in commodities indexes by adding a highly regardedplatform, which has considerable market traction, expertise, andcritical mass," Jason Barron, Global Head of Equity Derivatives forUBS said in a separate statement. "The DJ-AIGCI is one of the mostutilized indexes and is a strategic fit with our existing commodityindex, the UBS Bloomberg Constant Maturity Commodity Index."

He added, "We are pleased to add a valuable product offering toour core capabilities. Our clients now have a wide variety ofchoices in accessing commodity indexes."

AIG said AIG-FP began the process of unwinding its businessesand portfolios late last year.