(Reuters) – Bailed-out insurer AIG should be able to raise enough capital in the near term to buy out the U.S. government's remaining 61 percent stake, assuming both the company and the public share in any stock offering, Sandler O'Neill analysts said on Wednesday.
In a note to clients, Sandler estimated that AIG would be able to raise $18.2 billion over the next year. That would be more than enough, assuming the government's remaining stake is worth about $30.75 billion and that the U.S. Treasury sells half of any offering to the company and half to the public.
“AIG has participated in approximately half of each offering to date, which suggests that AIG needs to find approximately $15.4 billion to pay off the government's stake,” analyst Paul Newsome said.
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