AIG, Treasury May Speed Up Insurer’s Sale by Taxpayers, WSJ Says

American International Group Inc. is in talks with U.S. Treasury officials on speeding up an exit plan from government control which would repay taxpayers and allow the insurer full independence, the Wall Street Journal reported, citing people familiar with the matter.

The plan may come into effect as early as the first half of 2011, and the Treasury would convert $49 billion in AIG preferred stock into common shares; that would raise the government’s stake from 79.8 percent to about 90 percent, but would allow the shares to be gradually sold to private investors, the newspaper said.

That may generate a profit for the taxpayer, although a full exit from government ownership would take some years, the WSJ said.

• Facebook Share
• LinkedIn
• Google +1
• COMMENTS
• Print
• QUEUE