WASHINGTON—The Treasury Department says it expects to receive an additional $750 million from its latest sale of AIG stock as a result of underwriters buying additional shares.
Treasury says the underwriters exercised their over-allotment option in full to purchase approximately 24.6 million additional shares of AIG common stock at the public offering price of $30.50 per share.
Yesterday, Treasury said it had sold 163.9 million shares for approximately $5 billion, reducing its ownership stake in the insurance giant to 63 percent.
The exercise of the over-allotment option increases Treasury's expected proceeds from the public offering to approximately $5.8 billion and total number of shares sold in the offering to approximately 188.5 million.
Treasury officials said that, overall, the offering is expected to reduce Treasury's remaining investment in AIG to $30 billion, consisting of approximately 1.06 billion shares of common stock; and reduce Treasury's percentage ownership of AIG's outstanding shares of common stock to 61 percent.
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