American International Group Inc. and the Treasury Department are planning a stock offering this month for $9 billion, less than what officials expected, according to reports.
AIG’s board debated postponing the offering on Tuesday because of recent weakness in the company’s stock, The Wall Street Journal reported, citing "people familiar with the decision." But the board decided to go on with an offering near the low end of the predicted range of $7 billion to $25 billion.
The Treasury has high stakes in AIG, after giving the insurance company a $180 billion bailout. The government, which owns 92 percent of the company, planned to sell off its shares to the public to make a profit. But with the low offering, it is unclear whether the government will break even after the first share sales, according to Reuters.
The company will hold its annual shareholders meeting Wednesday. After the meeting, a “road show” to promote shares is expected to begin. The size of the offering could increase if demand for the stock grows.
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