American International Group Inc. (AIG) and the U.S. Department of the Treasury say they plan to offer a small portion of stock for an unset price in an effort to better understand the underlying value of the bailed-out insurer.
The announcement comes two days after news reports that shares of the company slid to their lowest point in eight months over concerns about whether the U.S. government will be able to make a profit off of the stock sale. Days before that, AIG reported an 85 percent drop in first-quarter net income, primarily due to $1.7 billion in pretax catastrophe losses and a $3.3 billion pretax charge related to paying back debt to the Federal Reserve Bank of New York (FRBNY).
The offering of 300 million shares is valued at nearly $9 billion, based on the price of AIG's stock at the time of the announcement.
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