AIG Shares Fall After Insurer Inks Deal with Federal Reserve
On Wednesday American International Group Inc's (AIG) shares fell sharply after the company signed a deal that will put majority ownership in the hands of government.
Late on Tuesday, AIG said it had signed a "definitive" agreement for up to $85 billion in borrowings from the U.S. Federal Reserve, the main part of a rescue by the central bank that will see it take a 79.9 percent stake in the giant insurer. Its shares fell 13.4 percent to $4.33 in early trading on the New York Stock Exchange, after touching $3.83.
Newly apppointed AIG Chief Executive Edward Liddy said in a statement the facility was "the company's best alternative" in the current market environment.
Published on September 25, 2008
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