US Treasury Planning Two Sales of AIG (AIG) Stock Next Year; To Exit Stake by 2012
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The U.S. Treasury is planning to sell a large chunk of its stake in American International Group (NYSE: AIG) through two stock offerings in 2011, according to a report from Reuters citing people familiar with the matter.
The government is also planning to sell the rest of its stake in the insurer by 2012, according to the report.
Following the recapitalization of AIG, the government will own a 92.1 percent stake in the insurer by the end of the first quarter. AIG received a $182.3 billion bailout from the government to prop it up during the financial crisis.
The government's stake is currently worth $90 billion at the stock's current price, nearly double the $49.1 billion it spent on the stake.
Shares of AIG are up $1 to $54.42 in midday market movement on Tuesday.
The government is also planning to sell the rest of its stake in the insurer by 2012, according to the report.
Following the recapitalization of AIG, the government will own a 92.1 percent stake in the insurer by the end of the first quarter. AIG received a $182.3 billion bailout from the government to prop it up during the financial crisis.
The government's stake is currently worth $90 billion at the stock's current price, nearly double the $49.1 billion it spent on the stake.
Shares of AIG are up $1 to $54.42 in midday market movement on Tuesday.
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