American International Group Inc. on Friday announced the completion of an offering of its common stock, with 200 million of the 300 million shares involved sold by the U.S. Treasury to disentangle the government from the bailed-out global insurance company.
AIG President and CEO Robert Benmosche said the sale was completed "at a price that represents a small profit on the shares sold by Treasury."
AIG and Treasury said Tuesday that they were selling the shares at $29 apiece, the low end of the insurer's expected $29 to $30 range but above the $28.73 the government said it needed to recoup its investment. The company didn't receive any proceeds from the sale of the government's shares.
The government said earlier that its stake in AIG would drop from 92 percent to 77 percent with this week's stock sale. Treasury can't launch another offering until September.
The Treasury Department is recouping taxpayers' investment in AIG during the financial crisis in 2008. It gave the New York-based company the biggest bailout, a package totaling more than $182 billion, to help AIG meet financial obligations to banks.
This week's offering gives the underwriters an option to buy as many as 45 million additional shares owned by the government.
Shares of AIG opened on Tuesday at $29.93. They fell that day and Wednesday before rebounding Thursday to close at $28.75. On Friday, they rose 9 cents to $28.84 in afternoon trading. They shares have lost almost half their value since they hit a 52-week high of $52.67 on Jan. 7.
Benmosche said Friday marked "the latest major milestone in AIG's comeback, as we strive to ensure that American taxpayers recoup their entire investment in AIG."
Overall, taxpayers have recouped more than $41 billion this year from their investment in AIG, Benmosche said,
Since AIG's bailout, government and company officials have been working to settle AIG's obligations, sell business units and repay its bailout money.