AIG $9 Billion Share Sale Approved by Board (AIG)

The Board of American International Group, Inc. AIG approved the company's second initial public offering in its history, according to a source familiar with the matter. CNBC's Kate Kelly first reported the development late Tuesday night. According to her report, "As part of the deal, the Treasury, which owns more than 1.6 billion AIG shares — the vast majority of its stock — intends to sell 200 million shares, plus possibly a greenshoe option, this person added. That would represent about 15 percent of Treasury's stake in the insurer." Kelly notes that "In addition, AIG will sell 100 million shares, to make a total of 300 million shares. At market price that would make the offering worth $9 billion." AIG has made considerable progress since the company sought a bailout in the 2008 financial crisis. The company received more than $180 billion in public funds, of which it owes slightly less than $60 billion. A Wall Street Journal report highlights that "Since 2008, AIG has sold 33 businesses and raised more than $57 billion in cash and securities. Last year alone, AIG raised more than $37 billion, primarily by selling two international life insurance divisions." The Treasury Department owns 92% of AIG through its holdings of the company's common stock. Share sales are expected to begin this month. American International Group is an international insurance organization, serving customers in more than 130 countries. Shares gained $0.33 in Tuesday after-hours trade, to $29.95.