AIG has concluded the repurchase of warrants it issued to the Treasury Department during the financial crisis. This removes the final element of government involvement in the company.
The warrants, which were sold in two tranches in 2008 and 2009, were repurchased for roughly $25 million. The 2008 tranche gave Treasury the right to buy around 2.7 million shares of the company's common stock for $50 per share. The figures for the tiny 2009 tranche were for up to 150 shares at $0.00002 apiece.
During the financial crisis, AIG was the recipient of around $182 billion in bailout funds from the government, which subsequently took a 92% stake in the company. Over the past few years, the government has divested itself of its shareholding.
The article AIG Buys Back Warrants From Treasury originally appeared on Fool.com.Fool contributor Eric Volkman has no position in AIG. The Motley Fool recommends, owns shares of, and has options on AIG. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.