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.
The Treasury said it would sell 206.9 million shares of AIG (NYSE: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.
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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.