NEW YORK (
American International Group's
(AIG - Get Report)
$9 billion stock offering is expected to price late Tuesday, according to reports.
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
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
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