AIG Buys Back Warrants From Treasury
byMar 2nd 2013 8:18AM
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.
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