MetLife 2010 Annual Report Download - page 20

Acquisitions and Dispositions
See Note 2 of the Notes to the Consolidated Financial Statements.
Risks Related to International Operations
Internationaloperationssuchasoursfacevariouspolitical,legal,operational,economic,foreignexchangeandotherrisks.Wefacethe
risk of discriminatory regulation, nationalization or expropriation of assets, price controls and exchange controls or other restrictions that
prevent us from transferring funds among countries in which we operate or converting funds from one currency to another, and fluctuating
exchange rates. We may also encounter labor problems resulting from workers’ associations and trade unions. In several countries, including
Japan, China and India, we must manage our relationship with local business partners in order to achieve our business objectives. Because of
our considerable presence in Japan, we face the risks (as well as benefits) from events and conditions, such as economic, demographic,
political, or environmental factors, that may uniquely affect that country.
Recent Developments
On March 8, 2011, MetLife, Inc. issued and sold 68,570,000 shares of its common stock in a public offering and ALICO Holdings, a
subsidiary of AIG, sold in a public offering 78,239,712 shares of MetLife, Inc.’s common stock, which it received as consideration from
MetLife in connection with the Acquisition. The gross proceeds for the sale of 146,809,712 common shares at $43.25 per share was
$6.4 billion, of which MetLife received $3.0 billion. Concurrent with the common stock offerings, ALICO Holdings sold 40,000,000 common
equity units of MetLife, Inc., which it received from MetLife in connection with the Acquisition. The Company used all of the proceeds from the
issuance of its 68,570,000 shares of common stock to repurchase and cancel 6,857,000 shares of MetLife convertible preferred stock
received by ALICO Holdings from MetLife in connection with the Acquisition. The Company did not receive any of the proceeds from the sale
of the 78,239,712 shares of common stock or 40,000,000 common equity units owned by ALICO Holdings.
The transactions allowed for an orderly disposition of the MetLife, Inc. securities owned by AIG. As a result of the transactions, AIG has sold
all of its holdings of MetLife, Inc. securities it received in the Acquisition. In connection with these transactions, the Company waived certain
provisions of the Investor Rights Agreement that the Company and ALICO Holdings entered into at the time of the Acquisition. Among other
things, the Investor Rights Agreement required ALICO Holdings to hold specified amounts of MetLife, Inc. securities for certain designated
periods of time.
As the scope and scale of the disaster in Japan continue to unfold after the March 11, 2011 earthquake off the coast of Honshu, MetLife
maintains a focus on the safety of its associates and their families and helping its business in Japan deliver on its promises to its customers
and business partners. Our business in Japan is open, operating and meeting the needs of our customers there. Although it is premature to
draw any conclusions about the effect of the earthquake and ensuing events on MetLife’s business in Japan, if any, MetLife continues to
monitor the situation in the region for its employees, customers and operations.
17MetLife, Inc.