NEW YORK (
American International Group
has extended its offer to exchange 74.5 million equity units until Tuesday evening as it prepares for a massive conversion of the U.S. Treasury Department's preferred stake.
The insurance giant is offering 0.1 share of common stock plus $3.27 in cash for each equity unit.
The exchange offer was originally set to expire just before midnight on Wednesday evening. As of that afternoon, 42.6 million units, or 57% of those available for exchange, had been tendered.
The trade is part of AIG's plan to exit its once-enormous federal bailout. The company is giving the Treasury a 92% stake via common stock in order to repay its remaining $50 billion in debt. The government will get 1.655 billion shares of common stock, to be wound down gradually over the next couple of years.
AIG shares closed at $41.78 on Wednesday, down from a 52-week high above $45 hit earlier this month.
-- Written by Lauren Tara LaCapra in New York
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