NU Online News Service, June 8, 12:27 p.m.EDT

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American International Group, Inc. said underwriting managershave purchased an additional 3.9 million shares of TransatlanticHoldings Inc. from AIG leaving the company with a 14 percentstake.

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Under terms of the deal, the aggregate gross proceeds will bringAIG $1.14 billion. AIG said reinsurer Transatlantic will notreceive any of the proceeds from the secondary offering.

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Last week, New York-based insurer AIG, along with itssubsidiary, American Home Assurance Co., said it would sell a totalof 29.9 million shares with the additional 3.9 million held as anoption for the underwriting managers to purchase.

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The offering is being managed by a syndicate of underwritersincluding J.P. Morgan Securities Inc., Goldman, Sachs & Co.,Morgan Stanley & Co., Lazard Capital Markets LLC, Dowling &Partners, and Fox-Pitt Kelton Cochran Caronia Waller.

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AIG said at the close of the secondary offering that AmericanHome Assurance would own approximately 14 percent of TransatlanticHoldings common shares issued and outstanding.

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Last week, Moody's said that AIG held 60 percent ofTransatlantic before the sale.

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AIG has been selling its assets to pay off billions in loans itobtained from the U.S. government after it fell into financialtrouble last year.

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In testimony before Congress in mid-May, AIG Chairman and ChiefExecutive Officer Edward Liddy said the company is using $40billion in funds available under the Troubled Asset Relief Program,has a $43 billion loan from the Federal Reserve Bank of New Yorkand has access to $30 billion more from the Fed.

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