WASHINGTON (Reuters) - The Treasury on Monday said it is trimming its ownership stake in American International Group Inc (AIG.N) to 61 percent from 70 percent by selling more shares of the insurer’s common stock.
The U.S. government said it expects to receive another $750 million by offering additional shares, known as exercising an over-allotment option.
On Sunday Treasury had said it expected to reduce its stake in AIG to 63 percent. But demand was high for the insurer’s shares and Treasury said it now plans to sell 188.5 million shares for approximately $5.8 billion.
The government acquired its AIG shares as part of a $182 billion bailout of the insurer in 2008, the largest-ever rescue of a single corporation, and has reduced the investment over time.
Reporting by Margaret Chadbourn; Editing by Leslie Adler