NEW YORK ( TheStreet) -- American International Group ( AIG) indicated Wednesday that it may take in $490 million from selling its stake in a reinsurance company.

The insurance giant had previously announced plans to sell 8.5 million shares of Transatlantic Holdings ( TRH), but said Wednesday that the offering had priced at $53.35 per share. Underwriters of the offering, which include Goldman Sachs ( GS), Wells Fargo ( WFC) and Bank of America ( BAC) have an option to buy another 725,969 shares. Altogether, the sale stands to reap $490.4 million for AIG.

The offering price is a slight discount to the $53.65 that Transatlantic -- often called TransRe -- closed at on Tuesday.

In morning trades, Transatlantic stock was up slightly at $53.91. AIG was surging 12.5% to $36.85 in a days-long rally fueled by its restructuring progress. The heavily shorted stock is also likely being boosted by short sellers covering their negative bets.

-- Written by Lauren Tara LaCapra in New York.