Treasury Will Sell Off Its Remaining AIG Shares

By: From CNN Money, Posted by Ralph Hipp
By: From CNN Money, Posted by Ralph Hipp


NEW YORK (CNNMoney) -- The Treasury Department announced plans Monday to sell the last of its shares in bailed-out insurer AIG.

The planned offering comes four years after AIG was crippled by the financial crisis and required a government bailout that eventually swelled to $182 billion. The government at one point owned 92% of the firm.

Treasury now owns 15.9% of AIG, or 234.2 million shares. The department did not reveal an offering price for these shares, though they're worth $7.8 billion at Monday's closing price of $33.36.

Following completion of the offering, the department will still hold warrants allowing it to purchase AIG stock in the future. An AIG (AIG, Fortune 500) spokesman declined to comment. Shares slid 1.2% in after-hours trading Monday.

In September, the Treasury Department sold $20.7 billion worth of AIG shares, reducing its stake in the company from 53.4% to 15.9%. At that time, Treasury said it and the Federal Reserve together had generated a $15 billion profit on the AIG rescue, having recovered $197 billion on a $182 commitment. To top of page


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