Treasury Plots Final Exit From AIG
On Monday, the U.S. Treasury announced the final step in its exit from American International Group . According to a press release, Treasury has launched an underwritten public offering for its remaining stake of 234.2 million AIG shares, or 16% of shares outstanding.
Upon completion of the offering, the U.S. government will still be able to profit from AIG. Treasury continues to hold warrants to purchase AIG stock, warrants that were issued it as part of the company's 2008 government bailout.
AIG closed down 2.3% on Monday. Even so, a sale at Monday's closing price could fetch more than $7.8 billion for U.S. taxpayers, on top of the $197.4 billion already received from prior sales of AIG shares -- and before any proceeds from exercise of the warrants.
At the time the government bailed out AIG, taxpayers' contribution to the company's rescue was valued at $182.3 billion.
The article Treasury Plots Final Exit From AIG originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of AIG and has long JAN 2014 $25.00 calls on AIG. Motley Fool newsletter services recommend AIG. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.