AIG Announces Plan to Repay U.S. Rescue With Stock | Bloomberg
American International Group Inc. agreed with U.S. regulators to repay its bailout by converting the government’s holdings into common shares for sale, a step toward independence for the insurer whose near collapse two years ago threatened the global economy.
The U.S. Treasury Department will convert its preferred stake of about $49.1 billion for 1.66 billion shares of common stock and then sell the holdings in the open market, AIG said today in a statement. Common shareholders, who hold about 20 percent of the company, will have their stake diluted to about 7.9 percent, the insurer said. Those investors will receive as many as 75 million warrants with a strike price of $45.
