AIG (NYSE: AIG) will receive the additional measure of freedom it has been seeking since the government became its majority owner in 2008.By most estimates, the federal government has staked $185 billion on the firm which is one of the world's largest insurers.
The Treasury announced that it will sell a large portion of its AIG holdings:
U.S. Department of the Treasury announced that it has launched an underwritten public offering of $18.0 billion of its American International Group, Inc. (AIG) common stock. AIG has indicated that it intends to purchase up to $5.0 billion of the common stock sold by Treasury in this offering at the initial public offering price. Treasury will also grant to the underwriters in the offering a 30-day option to purchase up to an additional $2.7 billion in common stock from Treasury to cover over-allotments, if any.
Oddly enough, AIG management made no immediate announcement about the plans of Treasury. It released a press statement which was almost entirely like the on at the Treasury website
Douglas A. McIntyre
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