American International Group Inc. (AIG: Quote) said Friday the U.S. Treasury has completed a $20.7 billion stock offering of its common shares and has drastically cut down its stake in the bailed-out insurer.
The Treasury offered 636.9 million shares of AIG common stock, par value $2.50 per share, netting proceeds of $20.7 billion.
As a result of the offering, Treasury has less than a majority stake for the first time since the 2008 financial crisis, reducing its holding in AIG to about 15.9 percent of outstanding common shares from about 53.4 percent.
The approximate 636.9 million shares of AIG common stock sold in the offering included nearly 153.8 million shares purchased by AIG for a total of about $5.0 billion.
Treasury's sale of AIG stock was bigger than expected as it initially planned stock sales valued $18.0 billion.
The U.S. government bailed out AIG with an investment of about $182.3 billion following the 2008 financial crisis, when AIG's credit ratings were downgraded below "AA" levels. The government has now recouped the amount and also has had positive returns of about $15.0 billion from the investment.
AIG is trading at $35.03, up 1.71%, on a volume of 26.9 million shares on the NYSE.
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by RTT Staff Writer
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