AIG, the insurer bailed out by the US government, is prepared to ask the Federal Reserve to relax rules on its $60bn-plus disposals programme to allow bidders to use a greater proportion of shares to pay for its assets.

People close to the situation said AIG was looking at instalment payments and other flexible options in an effort to make it easier for potential buyers to bid for assets and increase its chances of surviving as an independent company. The moves, being considered by AIG’s management, are aimed at boosting competition for the disposals and countering the perception that the company will be forced to sell units at bargain prices to repay the government aid.