The U.S. Treasury Department has started to sell 200 million shares of the common stock of American International Group Inc. (AIG).
AIG, New York (NYSE:AIG), is issuing and selling another 100 million shares, and the offering underwriters have an option to buy up to 45 million additional shares from the Treasury Department to cover any over-allotments.
The Treasury Department is keeping the proceeds from its stock sale, to help cover the cost of helping AIG overcome the effects of the credit crisis in late 2008.
AIG plans to use $500 million in offering proceeds to cover the cost of part of litigation settlement and to use any funds left over for general corporate purposes, the company says.
“No assurance can be given that the contemplated offering will be completed or, if completed, what the ultimate size or terms of the offering will be,” AIG says in a disclaimer concerning the description of the offering.
- Allison Bell