Treasury says may get $7.1B from AIG stock sale

AP News
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Posted: May 24, 2011 8:14 PM
Treasury says may get $7.1B from AIG stock sale

AIG has priced the sale of 300 million shares at $29 each, in a deal that could eventually bring the Treasury Department $7.1 billion.

The per-share price was the low end of the insurer's expected $29 to $30 dollar range. The sale included 200 million shares sold by the U.S. government.

Treasury said in a statement that the government could get gross proceeds of $7.1 billion if the underwriters exercise their option to buy an additional 45 million shares owned by the government.

The sale represents a crucial step in the government's effort to exit its ownership of American International Group Inc., which received more than $182 billion in taxpayer aid during the financial crisis.