East West Bank Pays $45 Million For AIG's Philippine Savings Bank

East West Banking Corp. on Thursday said it paid $45 million earlier this week to American Insurance Group Inc. (AIG) for the U.S. company's savings bank and two other units in the Philippines.

Antonio Moncupa, president of East West Bank, told reporters that the amount paid was lower than the earlier agreed upon price of $48.5 million for AIG Philam Savings Bank, Philam Auto Finance and Leasing Inc., and PFL Holdings Inc. because of some valuation adjustments.

Moncupa said the bank already secured the approval of the central bank to merge Philam Savings and the two other firms with East West Bank.

Philam Savings acquired the auto finance firms in 2008, but had to keep it as a separate company since central bank rules don't allow it to go into nonallied businesses. As a commercial bank, East West Bank won't have this problem.

East West Bank is the banking arm of investment holding firm Filinvest Development Corp. (FDC.PH).

AIG sold the savings bank and the two firms to raise funds needed to pay debts with the U.S. government.

-By Cris Larano, Dow Jones Newswires; 632-848-5051; [e-mail]