September 10, 2012
THANKS, W:
Treasury to Reduce A.I.G. Stake Below 50% (MICHAEL J. DE LA MERCED, 9/09/12, NY Times)
The Treasury Department said on Sunday that it was planning its biggest sale of shares in the American International Group to date, making the federal government a minority shareholder in the bailed-out insurer for the first time since it took control of the company four years ago.With the sale of at least $18 billion worth of shares in A.I.G., a number that could grow to $20.7 billion if investors prove enthusiastic, the Treasury Department could reduce its holdings to as little as 15 percent from 53 percent. [...][T]he rescue plan was initially denounced by some critics as likely to cost the government billions, while also leading to a breakup of the company.Four years later, the company has turned around. It has reported several consecutive quarterly profits, while seeing its stock rise more than 10 percent since the government began selling its holdings in May of last year.The company's shares closed on Friday at $33.99, above the government's break-even price of about $28.73.
Posted by Orrin Judd at September 10, 2012 4:52 AM
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