Treasury Sells More AIG Shares Than Planned, a Great Offering for Taxpayers

It's official! Not only was the U.S. Treasury sale of American International Group Inc. (NYSE: AIG) shares an overwhelming success, the AIG share overallotment was exercised as well. Now the taxpayers are not only whole on their bailout capital. They only own a fairly small minority stake.

The Treasury now expects to receive an additional $2.7 billion from its overallotment shares. The underwriters have already exercised their over-allotment option in full, so another 83.1 million shares of AIG common stock were sold at $32.50 per share.

The offering of 553.8 million shares at $32.50 per share brought in proceeds of roughly $18.0 billion. Combined with the exercise of the over-allotment option, the Treasury's sale proceeds are now about $20.7 billion and the total number of shares sold is roughly 636.9 million shares.

Today's secondary offering will have taken the Treasury's stake in AIG from 53.4% all the way down to about 15.9% of AIG's common stock outstanding.

AIG may still be hated by much of the public, but the taxpayers are now profitable and still own a rather large stake to boot.

If you want to know how successful this offering was, the $32.50 price was never even hit today as the low was $32.56. Shares are down only 0.8% at $33.04 with just under an hour to go.


Filed under: 24/7 Wall St. Wire, IPOs & Secondaries Tagged: AIG
Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.