Posted on 08 Jun 2009
American International Group Inc. (AIG) said underwriters have bought an additional 3.9 million shares of reinsurer Transatlantic Holdings Inc.
AIG is raising about $1.14 billion in the offering of the reinsurer's stock, including the divestiture of 26 million shares announced last week, the New York-based company said today in a statement. AIG will own 14 percent of Transatlantic, compared with its 59 percent stake before the share sale.
Chief Executive Officer Edward Liddy was forced to scale back plans to sell units in their entirety as the recession eroded the value of insurance assets and made financing costlier for potential buyers. The company, which is seeking to repay loans within a government bailout valued at $182.5 billion, has disclosed deals raising about $6.7 billion.
AIG raised about $988 million last week by selling the shares at $38 apiece, about 7.3 percent below Transatlantic’s $41 closing price the day before the offering. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley led the stock sale.