The U.S. government is continuing to sell its stake in companies after the 2008 bailout. The U.S. Treasury Department agreed to sell $5 billion of American International Group shares in a stock offering, with AIG buying $2 billion of the total.
Each share of the 163.9 million being sold will be at a price of $30.50 each. This is below the closing price Friday May 4th of $32.83 a share. The sale will bring the government's stake down to 63% of the company from 70%.
This is the third offering the government has made of AIG in the past couple years. The government's remaining investments in the insurer totals at $39 billion after the share offering.