WASHINGTON (Reuters) – The U.S. Treasury Department said on Friday it expects to raise $5 billion from its sale of American International Group stock, cutting the government's stake in the bailed-out insurer to 55 percent.
The sale, which would bring a profit of about $300 million to the U.S. Treasury, comes as President Barack Obama campaigns for a second term and has been forced to defend his administration's decision to use taxpayer money to prop up companies during the crisis.
The Treasury Department priced the offering at $30.50 a share, six percent above the $28.72 price needed for the U.S. government to break even on its investment in the insurer.
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