Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos
Intermediaries
Brokerage
Return to: IBR Home | Intermediaries | Brokerage

US Treasury to sell $5bn AIG shares

IBR Staff Writer Published 08 May 2012

The US Department of Treasury is planning to sell $5.8bn worth of its shares in American International Group (AIG), further reducing ownership stake to 61% from 70%.

The department has agreed to sell 163.93 million shares at $30.50 per share, with AIG buying 65.57 million shares, representing about $2bn of the expected proceeds from the sale.

The remaining $3bn will be raised by offering the rest of the shares in a public offering, marking the third multi-billion offering made by the Treasury in the past 12 months.

The US government is also expecting to receive another $750m by offering additional shares, called as exercising an over-allotment option.

The Treasury raised $6bn in its previous share sale in March 2012, of which AIG purchased $3bn.

The insurer received a $182.3bn bailout from the US government in 2008 during the financial crisis as part of the Troubled Assed Relief Program (TARP).

The US government initially owned 79.9% of the company, but sold $5.8bn in common stock in May 2011.