The Treasury on Thursday priced its $6 billion AIG offering at $29 a share, allowing the Obama administration to break-even on its investment in the insurer as it winds down bailout programs from the financial crisis.
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The Treasury said it would sell 206.9 million shares of AIG (AIG), reducing its stake in the insurer to 70 percent from 77 percent. AIG has agreed to buy 103.4 million shares, representing about half the proceeds.
The sale is part of efforts to exit stakes in private companies as soon as practicable, and to wind down the $700 billion Troubled Asset Relief Program established to protect Wall Street during the crisis, Treasury Assistant Secretary Tim Massad said.
Shares of AIG fell 3 percent to $28.45 in early morning trading.