The U.S. Treasury Department agreed to sell $5 billion of shares in American International Group Inc. in a stock offering, with the bailed-out insurer buying $2 billion of the total.The Treasury is selling 163.9 million shares at $30.50 each, compared with the May 4 closing price of $32.83, the department said in an e-mailed statement yesterday. The transaction, the government's third offering of AIG's shares since last May, reduces the Treasury's stake in the insurer to 63 percent from 70 percent, according to the statement.Chief Executive Officer Robert Benmosche, 67, has sold assets to help raise funds to buy back shares from the U.S. The company said in March that dividends from insurance subsidiaries along with proceeds from divesting a plane-leasing unit, a stake in Hong Kong-based AIA Group Ltd. and other holdings will allow it to generate as much as $30 billion that could be returned to shareholders by the end of 2015."The company has been able to monetize sales of non-core assets and we expect this to continue for the longer term," JPMorgan Chase & Co. analysts led by Arun Kumar said in a note to clients May 4, before the sale was announced.
Source: Sfgate
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