Treasury to Sell $18 Billion in AIG Common Stock
Company to purchase up to $5 billion at $2.50 per share.
Insurance Networking News, September 10, 2012
The U.S. Department of the Treasury will offer $18 billion of its common stock in American International Group Inc. (AIG) at $2.50 per share and will grant a 30-day option to the underwriters to purchase an additional $2.7 billion of the stock to cover any over allotments, according to a press release from Treasury. The sale will reduce Treasury’s holdings in the company by half, reducing the government to a minority shareholder.
Treasury said AIG will purchase up to $5 billion of the stock at the initial public offering price, as previously announced and authorization by the AIG board of directors.
Starting in September 2008, the company received a total of $150 billion in bailout funds from the U.S. Federal Reserve Bank and U.S. Treasury as the company collapsed as a result of exposure to more than $440 billion in credit derivatives.
Citigroup, Deutsche Bank Securities Inc., Goldman, Sachs & Co., and J.P. Morgan Securities LLC have been retained as joint coordinators for the offering. Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. have been retained as joint book-runners for the offering.
In a press release, Treasury said the offering will be made “under the company’s shelf registration statement filed with the Securities and Exchange Commission and only by means of a prospectus supplement and accompanying prospectus.”
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Comments (1)
Just one more reason to reasses the "bailouts". Once they straightened out ther house financially, ridding themselves of the stupid financial division and unneeded overseas affiliates, that have made a real comeback. Not all have worked out but many jobs were saved and many necessary companies were saved. Politics aside, there was a need and it was filled. I have been fortunate in that I bought the stock at it's lowest and sold for a nice profit. Having faith in your institutions is essential to maintaining our financial stability. AIG is under fine management and deserves to survive.
Posted by: elevans66 | September 11, 2012 2:12 AM
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