The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

AIG Announces Completion of the U.S. Department of the Treasury $20.7 Billion Offering of AIG Common Stock

<p class='bwalignc'> <i>America's $182.3 Billion Total Commitments to AIG Fully Recovered</i> </p> <p class='bwalignc'> <i>America Realizes More Than $15 Billion Combined Positive Return From AIG Commitment to Date</i> </p> <p class='bwalignc'> <i>America's Remaining Stake in AIG Worth More Than $8 Billion</i> </p>

Friday, September 14, 2012

AIG Announces Completion of the U.S. Department of the Treasury $20.7 Billion Offering of AIG Common Stock10:32 EDT Friday, September 14, 2012 NEW YORK (Business Wire) -- American International Group, Inc. (NYSE: AIG) announced today the completion of an offering of approximately 636.9 million shares of AIG common stock, par value $2.50 per share (AIG Common Stock) by the U.S. Department of the Treasury (Treasury). Treasury received proceeds of approximately $20.7 billion from the sale of AIG Common Stock in the offering. “Everyone at AIG is deeply proud that we kept our promise to make America whole plus a profit,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “I am proud of the hard work and dedication the people of AIG have demonstrated to reach this milestone, and once again we thank America for the opportunity to prove that we would do the right thing with their money. I believe where we stand today is a testament to the strength of the AIG franchise, to the faith of our employees, customers, partners, and stakeholders, and to America's ability and willingness to fix problems and emerge stronger from tests of crisis.” The offering reduced Treasury's remaining investment in AIG to approximately 234.2 million shares of common stock or approximately 15.9 percent of outstanding shares from approximately 53.4 percent. According to Treasury figures, Treasury and the Federal Reserve Bank of New York have received a combined positive return of approximately $15.1 billion from their overall $182.3 billion commitment to AIG. This profit does not include Treasury's remaining stake in AIG, which, if valued at the September 13, 2012, closing price of $34.44 per share, would provide an additional profit of approximately $8.1 billion. The approximately 636.9 million shares of AIG Common Stock sold in the offering included approximately 153.8 million shares purchased by AIG for an aggregate purchase amount of approximately $5.0 billion, and approximately 83.1 million shares sold pursuant to the exercise in full of the underwriters' option to purchase additional shares of AIG Common Stock to cover over-allotments, for an aggregate purchase amount of approximately $2.7 billion. Since May 2011, Treasury has sold approximately 1.4 billion shares of AIG Common Stock for total proceeds of approximately $44.0 billion, including approximately $13 billion purchased by AIG. American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. AIGNews Media:Jim Ankner(O): 212-770-3277(C): 917-882-7677orInvestment Community:Liz Werner(O): 212-770-7074