Speculation grew Tuesday that MetLife is negotiating to buy American International Group Inc.'s American Life Insurance Co.

The price under discussion for the company, known as Alico, is said to be between $14 billion and $15 billion. Analysts had expected more companies to bid for Alico. Yet liquidity concerns over AIG's units made it a less attractive target, said Bill Bergman, a senior equity analyst at Morningstar.

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