Insurer AIG (AIG) plans to purchase up to $3 billion of its own common stock when the Treasury offers billions of dollars in common stock that it acquired from AIG in the heat of the financial crisis.
With a sale price of $2.50 a share, the Treasury announced plans to sell up to $4.5 billion of the remaining AIG common stock under its umbrella. In addition, the department intends to grant a 30-day option for underwriters to purchase additional shares to cover over-allotments.
The AIG board of directors approved plans for the insurer to nab $3 billion in AIG common stock held by the Treasury.
When AIG hit a turbulent period in 2008, the Federal Reserve Bank of New York and Treasury slated $182 billion to be used to buy stock and toxic assets as part of the AIG bailout.
AIG will make the offering under its shelf registration statement, which was filed with the Securities and Exchange Commission.