AIG shares on the afternoon of Jan. 7 were selling at about $61.50 each.

Robert H. Benmosche, AIG president and chief executive officer, said the company is "working diligently" to complete the recapitalization plan "in the coming weeks."

The issuance of warrants depends on AIG and the government closing a deal to repay the government for sustaining the massive company with a bailout worth $182 billion. The company said it will announce on Jan. 12 whether this condition has been satisfied.

As part of the plan, AIG will use proceeds from the sale of its American Life Insurance Company (ALICO) and proceeds from an initial public offering of its unit, AIA Group Ltd. in Hong Kong, to repay a line of credit to the Federal Reserve Bank of New York.

Additionally, the Treasury's stake in AIG will increase to about 92 percent from 80 percent, clearing the way for it to offer stock to the public. The Treasury said it expects a profit on its investments in AIG.

Just prior to the end of 2010 AIG said it entered into $4.3 billion in loan agreements with 36 banks–a sign it can raise money from private investors.

Early in December, after more than two years away from the debt markets, AIG returned and raised $2 billion in bonds, and it established a $500 million contingency letter of credit in the middle of the month.