JPMorgan Chase & Co. stopped advising American International Group Inc. on a global plan to sell more than a dozen units, because the job threatened to disqualify the banking company from doing business with potential buyers for years, three people with knowledge of the matter said.

JPMorgan Chase, the world's second-biggest merger adviser, is still working with AIG to sell at least three divisions and may seek its permission to work with buyers of other units, according to the people, who asked not to be identified, because the new arrangement has not been formalized.

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