Treasury Sale of AIG Stock Could Cut Stake to 15%
American International Group (AIG) announced that the U.S. Department of the Treasury has launched an offering of $18 billion of its AIG common stock. AIG said the Treasury will also grant a 30-day option to the underwriters for the offering to purchase up to an additional $2.7 billion of AIG Common Stock to cover over-allotments, if any.
According to the Treasury Department, as of August 30, 2012, the government’s remaining investment in AIG is approximately $24.2 billion, which consists of approximately 871.1 billion shares of common stock. As a result of the sale, the Treasury Department could reduce its holdings to as little as 15% from 53%.
The Treasury Department also said, based on market prices, the government stands to make a profit on its overall investment in AIG.
To read the AIG news release, click here.
To read the related story in the New York Times, click here.