Treasury To Get Rid Of AIG StakeBy Shaon, Gaea News Network
Wednesday, December 8, 2010
The Treasury seems to be prepared to loose its stake in the insurer American International Group (AIG, incidentally this company was bailed out during the recession. In the offering AIG and the Treasury would sell their stocks. The amount is estimated at $ 10 billion.
This action by the Government indicated that the observation that the market has accepted the bailed out companies with open arms is indeed true. In related news remaining shares in Citigroup Inc for $4.35 each for its remaining shares. Aite group analyst Clark Troy said
Given those two precedents, as well as the market’s willingness to digest the AIG debt, I don’t see 20 percent in the first half of 2011 being particularly aggressive at all.
The offering is set to be done after a proposed recapitalization plan. After the successful completion of the act the Treasury will own upto 92.1 percent of AIG. The insurer had received $182.3 billion aid package funded by the tax-payer. AIG made it clear that they need to raise at least $3.5 billion dollars in capital. They are also expected to be looking for at least $1.5 billion from a share offer.
Tags: AIG, United States