American International Group, Inc. (AIG) announced that the U.S. Department of the Treasury has launched an offering of its AIG common stock, par value $2.50 per share.
However, the size of the offering was not revealed.
The company stated that the Treasury will also grant an option to the underwriters for the offering to purchase additional shares to cover over-allotments, if any.
AIG added that in connection with Treasury's offering, it has indicated to Treasury that it intends to purchase shares of AIG common stock in the offering, at the initial public offering price, pursuant to an authorization granted today by the AIG Board of Directors to purchase up to $2 billion of AIG common stock.
In March 2012, Treasury sold about $6 billion of its AIG common stock, of which AIG purchased approximately $3 billion.
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