NEW YORK (
has reached an agreement on a plan for the U.S. Treasury to convert $49 billion of preferred shares it holds in the world's largest insurer into common shares and would allow for the U.S. government to exit its ownership stake in the company, according to reports.
The plan is likely to be detailed in an announcement on Thursday morning in New York, the
Wall Street Journal
The conversion initially would raise the government's stake in AIG to 92% from the current 79.8%, the
reports, citing a person familiar with the matter. The conversion, which could take place early next year if AIG can meet certain conditions by then, would then position the government to wind down its stake in AIG.
AIG's board and federal officials met until late in the evening Wednesday, and in some cases into the early hours of Thursday, to finalize the terms of the government exit strategy, the
The plan required approval from Treasury, the
, AIG's board, and trustees that oversee the government's majority interest in AIG.
AIG expects to maintain its credit ratings under the plan, a person told
Treasury may begin converting its $49 billion preferred stake into common stock for sales next year, three people with knowledge of the discussions told
two Japanese life insurance units for $4.8 billion to
-- Written by Joseph Woelfel
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