As the government looks to pare back its stake in American International Group, the Treasury Department priced a large offering in the bailed-out insurer at $32.50 a share on Monday, according to people briefed on the matter.
At $32.50 a share, the offering is below A.I.G.'s Monday closing price of $33.30, since banks running stock sales normally include a discount to entice investors to buy. Even at that level, the price remains above the $28.73 that Treasury has identified as the break-even for its investment in the insurer.
With the sale, the Treasury Department and A.I.G. realized a long-held goal of reducing the government to a minority ownership position, helping hasten an end to one of the most contentious bailouts of the financial crisis. The Obama administration announced on Sunday that it planned to sell at least $18 billion worth of shares, and potentially up to $20.7 billion.
Shares in A.I.G. fell 2 percent on Monday, as existing investors fretted over the enormous slug of stock that would hit the markets.
I was up very early this morning .... and I too saw the articles.... just as txandco describes. And they did NOT have a September date on them. They were also listed in the "Headlines" list under the quote page!!
This article was posted last night in the "Headlines" section of Yahoo AIG. I also thought this was a new article, but the numbers did not add up. This is an article originally from Sept 10, 2012. It is a bit strange why this old article would be re-posted as news.