American International Group and its largest investor, the US Treasury, are poised to raise at least $8.7bn through a sale of stock on Tuesday, handing the federal government a small profit on the deal, people familiar with the matter said.
AIG and the Treasury plan to issue the shares at $29-$29.30 each on Tuesday, the people said. The offering attracted enough demand to meet Treasury’s goal of selling 300m shares. As of late Monday, officials had ruled against selling more, they said.
The price range would ensure that the Treasury will make money on its first attempt to shed some of the AIG holdings it inherited during the financial crisis. The government, whose $180bn bail-out left it with a 92 per cent stake, needs to sell each share for at least $28.73 to break even on the bail-out… (more)
EDITOR: When the bail out took place, who would have believed that the government might make a profit on its investment in AIG?
