(Reuters) – The U.S. Treasury has agreed to cut its ownership stake in American International Group Inc to 63 percent by selling 163.9 million shares for approximately $5 billion, with the insurer agreeing to buy back about $2 billion worth.
The U.S. government, which currently owns 70 percent of AIG common stock, acquired its shares as part of a $182 billion bailout of the insurer in 2008, the largest-ever rescue of a single corporation, and is gradually exiting its investment.
The Treasury said that it plans to sell its shares at a public offering price of $30.50 per share, a 7 percent discount to Friday's closing price of $32.83 but a little higher than its previous sale price of $29 in March. The stock has run up some 42 percent for the year to date.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
