The giant insurance company said earlier this month it planned to sell 100 million common shares and the U.S. Treasury 200 million, less than the amount originally expected, as the insurer's stock price fell to near 52-week lows.
The decline in the stock price has dimmed the chances the offering could be boosted beyond $10 billion, The Wall Street Journal reported, citing people familiar with the matter.
AIG closed Monday at $29.98, down 2.7%. The stock has traded near there or slightly higher since the company announced the stock offering on May 11.Investment banks coordinating the sale have so far gotten indications of interest from investors in the U.S. and abroad that cover roughly the whole offering, according to people familiar with the matter, the Journal reported. The stock sale is likely to take place on schedule unless there is a big market selloff on Tuesday, the people said. The offering is expected to be priced at between $29 and $30 a share. The U.S. Treasury said it will grant underwriters the option to purchase up to 45 million additional shares to cover any over-allotments. That would bring the size of the deal to about $10 billion and cut the Treasury's stake in AIG to about 75% from 92.1%. -- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV