WASHINGTON (Reuters) - The Treasury Department said on Monday it expects to raise an additional $750 million by selling shares in bailed out insurer American International Group to underwriters of a recent Treasury sale of AIG (AIG.N) stock.
That reduces the government’s stake in the firm to 53 percent the Treasury said, following Friday’s announcement that it was selling $5 billion in AIG stock, which was trading at $32.16 on Monday. The underwriters were offered the shares at $30.50.
The insurer, which was at the epicenter of the 2008 financial meltdown, received multiple bailouts under both the Obama and Bush administrations, with the government pledging as much as $182 billion in aid.
The Treasury hired over a dozen financial institutions to help coordinate and run the offering, including Citigroup Inc, Deutsche Bank Securities, Goldman Sachs, JPMorgan Securities, Morgan Stanley and Credit Suisse.
Reporting By Pedro Nicolaci da Costa; Editing by Neil Stempleman