NEW YORK – American International Group Inc., the insurance firm that was bailed out by U.S. taxpayers, said Wednesday that AIG and the U.S. Treasury will sell a total of 300 million company common shares in the market.
AIG said it will issue and sell 100 million shares, and the Treasury will sell 200 million shares.
AIG will not receive any proceeds from the Treasury sale.
However, AIG said it will use $550 million of the proceeds from its own stock sale to fund part of a disclosed litigation settlement.
The U.S. government now owns slightly more than 92 percent of AIG, after bailing out the insurer during the financial crisis.
AIG shares have fallen more than 38 percent this year on concerns that the Treasury’s share sales will increase supply of the stock. Rising supply often pressures stock prices.
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