Watch Live

Tweet TWEET

AIG Shares Said to Be Priced at $32.50 in U.S. Offering

The U.S. Treasury Department has begun an offering for 234.2 million shares in American International Group Inc., which will end the government’s holding in the insurer four years after its bailout.

American International Group Inc. (AIG) shares were priced at $32.50 each in an offering by the U.S. Treasury Department as the government winds down a stake acquired in a bailout of the insurer, according to two people familiar with the sale.

The people asked not to be identified because the U.S. hadn’t made an announcement about the sale of stock in the New York-based company. Matt Anderson, a Treasury spokesman, declined to comment. The offering price is below AIG’s close of $33.36 on the New York Stock Exchange today.

The U.S. took over the company in 2008 to save the global economy from collapse. The latest offering is Treasury’s sixth of AIG shares since the $182.3 billion bailout, cutting its stake from as high as 92 percent. Treasury said earlier today that it was offering all of its 234.2 million remaining shares.

“AIG is a different company today than it was four years ago,” Chief Executive Officer Robert Benmosche, 68, said in a Dec. 9 memo to employees. “We’re leaner, more focused, and hungry for tomorrow.”

Bank of America Corp. (BAC), Citigroup Inc. (C), Deutsche Bank AG (DBK), Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. are managing the offering, the Treasury said.

Photographer: JB Reed/Bloomberg

The U.S. Treasury Department has begun an offering for 234.2 million shares in American International Group Inc., which will end the government’s holding in the insurer four years after its bailout. Close

The U.S. Treasury Department has begun an offering for 234.2 million shares in American... Read More

Close
Open
Photographer: JB Reed/Bloomberg

The U.S. Treasury Department has begun an offering for 234.2 million shares in American International Group Inc., which will end the government’s holding in the insurer four years after its bailout.

To contact the reporters on this story: Lee Spears in New York at lspears3@bloomberg.net; Fox Hu in Hong Kong at fhu7@bloomberg.net

To contact the editors responsible for this story: Dan Kraut at dkraut2@bloomberg.net; Philip Lagerkranser at lagerkranser@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.