NEW YORK ( TheStreet) -- American International Group ( AIG) will offer 146.8 million shares of MetLife ( MET) common stock to the public in order to finalize the Alico transaction that closed last year and hasten AIG's repayment of bailout funds to the U.S. Treasury Department.

AIG said on Tuesday that it has received permission to sell 78.2 million MetLife shares and 40 million common equity units it received last year as part of its sale of Alico . At the same time, MetLife said it will offer 68.57 million shares of common stock in order to raise funds to repurchase additional preferred stock that AIG received as part of the deal.

AIG will use proceeds to repay its debt to the Treasury Department more quickly. MetLife will not receive proceeds from any of the transactions.

As part of the $16.2 billion sale of its Alico subsidiary to MetLife, AIG received the equivalent of nearly 215 million common shares, as well as $7.2 million in cash. At the close of business on Tuesday, its cumulative MetLife stake was worth about $9.9 billion.

"We appreciate MetLife's agreement to permit the proposed sales," AIG Chairman Steve Miller said in a statement. "As a result, AIG expects to take another major step forward. Seven weeks ago, we repaid the Federal Reserve Bank of New York in full. These sales, if completed, would put the government closer to recouping its investment in AIG."

Goldman, Sachs ( GS), Citigroup ( C) and Credit Suisse ( CS) are the book-running managers for the common stock transaction while Goldman and Citi are heading the common equity unit deal.

-- Written by Lauren Tara LaCapra in New York.

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