(RTTNews) -  Thursday, insurance and financial services provider American International Group, Inc. (AIG: News ) announced an underwritten public offering of 26 million shares of Transatlantic Holdings, Inc. (TRH: News ) common stock, owned by AIG and its subsidiary, American Home Assurance Company or AHAC, at $38.00 per share.

The underwriters have a 30-day option to buy up to an additional 3.9 million shares of TRH common stock from AHAC. TRH will not sell any shares in the offering.

J.P. Morgan Securities Inc., Goldman, Sachs & Co., and Morgan Stanley & Co. Inc. are joint book-running managers with Lazard Capital Markets LLC as co-lead underwriter. Dowling & Partners and Fox-Pitt Kelton Cochran Caronia Waller are acting as co-managers of the offering.

AIG, which almost collapsed in mid-September after rating downgrades forced the company to post collateral on credit default swaps which banks bought from the insurer, was bailed out by the U.S. government with a $85 billion initial credit line.

The bailout amount grew to $182.5 billion in March and the government now owns 79.9% of the company. The troubled company is presently in the process of selling assets and spinning off some subsidiaries to repay bailout loans it received from the U.S. government.
Late last month, AIG completed the sale of its prime real estate holding in the Otemachi District in Tokyo, Japan to Nippon Life Insurance Company, in a cash deal valued at about $1.2 billion.

Early this month, AIG said that it has signed a deal to sell 100% of its share in its consumer finance operations in Argentina. In addition, the company also announced that it has agreed to sell two buildings in Lower Manhattan, including its main headquarters at 70 Pine Street.

AIG rose $0.17 or 11.56% and closed Thursday's regular trading session at $1.64. The stock has traded between $0.33 and $36.50 during the past year.

TRH declined $0.74 or 1.77% and closed at $41.00. After hours, TRH declined further $0.62 or 1.51% and traded at $40.38.

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by RTT Staff Writer

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