U.S. Treasury Announces Public Offering of AIG Stock

The U.S. Treasury Department said it has launched an offering of $6 billion of its American International Group Inc. (AIG) common stock. AIG has indicated that it intends to purchase up to $3 billion of the common stock sold by the Treasury in this offering at the initial public offering price, the Treasury said in a statement today.

Treasury also said it reached an agreement with AIG that provides for repayment of the government’s remaining $8.5 billion preferred equity investment in the AIG-owned entity AIA Aurora LLC -- a special-purpose vehicle that holds ordinary shares in AIA Group Limited. AIG is expected to repay this remaining $8.5 billion plus accrued preferred return, the Treasury said in the statement.

To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net

To contact the editor responsible for this story: Kevin Costelloe at kcostelloe@bloomberg.net

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