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August 29, 2001 at 08:00 PM
NU Online News Service, Aug. 29, 10:35 a.m. – American International Group Inc., New York, today completed its previously announced acquisition of American General Corp., Houston.
AIG is acquiring American General through a stock swap with a value of about $21 billion. The final exchange ratio, based on a closing date of Aug. 29, will be 0.579 share of AIG stock for each share of American General common stock, AIG says.
American General has had about 500 million shares of common stock outstanding. About 440 million of the shares have been in the hands of investors, according to Commodity Systems Inc., Boca Raton, Fla.
The price of AIG shares closed Tuesday at $70.77.
AIG first revealed its interested in American General April 3, when it announced an alternative to an earlier offer made by Prudential Corp. P.L.C., London, a British insurer that is unrelated to Prudential Insurance Company of America, Newark, N.J.
Prudential pulled out because its proposed American General deal was unpopular with its own shareholders, and the AIG proposal appeared to be more popular with American General shareholders.
