Treasury to cut AIG stake below half in $18-billion sale |
| Globe and Mail - Sep 10, 2012 |
The U.S. government is selling more of its shares in insurer American International Group Inc., in a move that should decrease its holdings below a majority stake for the first time since the $182-billion (U.S.) bailout in 2008.
The sale is the latest step to recoup taxpayer money spent on the largest bailout of the financial crisis.
AIG said Sunday that the Treasury Department is selling $18-billion worth of its common shares to institutional investors.
If there is more demand, the government will grant the underwriters a 30-day option to buy up to $2.7-billion more of its stake in the company.
AIG said it will buy back $5-billion worth. The price is not yet determined.
The move should reduce the government’s stake in AIG to less than 20 per cent of the insurer’s total outstanding stock. Right now, Treasury holds about 53 per cent of the company, or more than 871 billion shares of common stock, worth about $30-billion.
Read Full Article from Globe and Mail
- Posted: 2012-09-10 12:23:16
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