U.S. Treasury To Sell AIG Common Stock - Again
By Global Value Investor:On Friday the U.S. Treasury Department announced the public offering of AIG common stock.
Today, the U.S. Department of the Treasury announced that it has launched an underwritten public offering of its American International Group, Inc. (AIG) common stock. The size and price to the public of the offering will be announced after pricing of the offering. AIG has indicated that it intends to purchase up to $2 billion of the common stock sold by Treasury in this offering at the initial public offering price.
Unfortunately, the announcement does not include a note about the volume of the sale. However, AIG found it necessary to already mention that it will participate and repurchase what could be north of 60 million shares.Two things I find noteworthy:
- The repurchase price. You see, I never bought into the idea that the U.S. Treasury will sell at $29, which has been purported as