NEW YORK (

TheStreet

) --

American International Group

(AIG) - Get Report

said Wednesday it will pay $161.8 million and issue 4.9 million shares of common stock as its exchange offer comes to a close.

The insurer had offered to exchange up to 74.5 million "equity units" in exchange for 0.1 shares of common stock and $3.27 in cash. The exchange ended just before midnight on Tuesday evening. About 66% of the units were exchanged, with 28.9 million still outstanding.

The exchange is part of AIG's broader plan to repay its bailout tab by issuing 1.655 billion shares of common stock to the federal government. The U.S. Treasury Department will exchange its $50 billion worth of preferred stock for that 92% stake.

In October, UBS analyst Andrew Kligerman issued a "short term buy" rating on the stock, with a $45 price target, saying the exchange offer would provide a lift for AIG shares. On Wednesday morning, the stock was up 1.1% at $41.31. It has remained above $40 since the bailout repayment plan was announced on Sept. 30, but hasn't approached the 52-week high of $45.95.

Read more:

>>> AIG Becomes a Value Play

>>>AIG Stock Climbs as Exchange Begins

>>>AIG Swings to Loss on Restructuring Costs

>>>United Guaranty: AIG's Unlikely Success Story

-- Written by Lauren Tara LaCapra in New York

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