NU Online News Service, Nov. 17, 12:36 p.m. EST
In a series of filings with the Securities and Exchange Commission, American International Group (AIG) submitted adjusted financial statements taking into account several transactions meant to ultimately repay taxpayers.
AIG said in a filing that the statements were filed "in connection with its plans to re-access the capital markets."
Robert H. Benmosche, president and chief executive officer of AIG, has said it is possible AIG will offer to the public an undisclosed amount of stock in early 2011.
AIG said income from continuing operations was about $4.3 billion at Sept. 30. The pro forma total includes the company's asset sales and after converting the U.S. government's ownership of the company into commons stock, according to the filing.
AIG actually reported net income of about $1.1 billion after nine months.
AIG will own less than 8 percent of its common stock once it uses $22 billion in available Troubled Asset Relief Program funds to purchase an equal amount of interest in each special purpose vehicle (SPV) holding AIA Group Ltd. and American Life Insurance Company (ALICO). AIG will then give the interest in the SPVs to the Treasury, which will allow the Treasury to sell stock to the public.
This could happen at the same time AIG offers its IPO.
The Treasury, which had owned 80 percent of AIG after the bailout two years ago, is to own 92.1 percent of the common stock of AIG after it converts the $49.1 billion of preferred shares it has under TARP into about 1.66 billion shares of common stock.
Two weeks before AIG announced its third quarter earnings the company said it raised enough money from its sale of ALICO to MetLife Inc. and an initial public offering of AIA Group Ltd. in Hong King to repay a line of credit with the Federal Reserve Bank of New York.
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