deal involved a total of 146.8 million MetLife common shares. AIG is selling 78.2 million of the shares, while MetLife is offering the other 68.6 million and plans to use its proceeds to purchase and cancel preferred stock held by AIG from the ALICO deal.
The Treasury Department issued a statement on Wednesday saying the expected $6.3 billion in gross proceeds from the offering to go towards AIG's bailout tab, which currently stands at $18.2 billion.
"This is the next chapter in AIG's remarkable turnaround," said Acting Assistant Secretary for Financial Stability Tim Massad said in the statement. "We are optimistic about the prospects that taxpayers will recover every dollar invested in AIG - something that many thought would be impossible when these investments were first made."AIG also priced a public offering of 40 million MetLife common equity units at $75 each. The $3 billion in proceeds from this offering are to go into an escrow account to pay any obligations that AIG may end up owing MetLife under the terms of the ALICO sale. After a holding period of two years, the remaining proceeds would then be released to the Treasury. MetLife shares closed Wednesday's regular session at $43.41, down 5.7%, on more than five times its usual daily volume, while AIG's stock rose 1.6% to $37.30. -- Written by Michael Baron in New York.
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