Treasury prices $5B sale of AIG stock

[May 07, 2012]  NEW YORK (AP) -- The Treasury Department is selling $5 billion worth of stock in bailed-out insurance giant American International Group Inc. for $30.50 per share.

AIG will buy about $2 billion worth of the stock. The remaining $3 billion will be offered to investors in a public offering. The government may sell another 24.6 million shares if there's demand for the stock.

Treasury has owned a majority of AIG since the 2008 financial crisis. AIG, based in New York, received the biggest bailout of any single company, worth a total of $182 billion.

This is Treasury's third sale of AIG shares. After the sale, Treasury will have a 63 percent stake in AIG stock.

AIG shares closed Friday at $32.83.

[Associated Press]

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