Treasury Plots Final Exit From AIG
Dec 10th 2012 6:38PM
Updated Dec 10th 2012 6:46PM
On Monday, the U.S. Treasury announced the final step in its exit from American International Group . According to a press release, Treasury has launched an underwritten public offering for its remaining stake of 234.2 million AIG shares, or 16% of shares outstanding.
Upon completion of the offering, the U.S. government will still be able to profit from AIG. Treasury continues to hold warrants to purchase AIG stock, warrants that were issued it as part of the company's 2008 government bailout.
AIG closed down 2.3% on Monday. Even so, a sale at Monday's closing price could fetch more than $7.8 billion for U.S. taxpayers, on top of the $197.4 billion already received from prior sales of AIG shares -- and before any proceeds from exercise of the warrants.
At the time the government bailed out AIG, taxpayers' contribution to the company's rescue was valued at $182.3 billion.
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