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AIG's MetLife Stock Sale of $6.3 Billion to Accelerate Government Pay-Back

Source: NY Times

Posted on 03 Mar 2011

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American International Group (AIG) sold its holdings in MetLife late Wednesday, receiving approximately $9.6 billion from the stock offerings to help repay its government bailout. The Treasury Department said in a statement that the insurer sold 146.8 million MetLife common shares for about $6.3 billion.

AIG also sold equity units with a face value of $3 billion for $3.3 billion.

The proceeds from the stock sale will go toward paying down some of the Treasury’s $18.2 billion in preferred equity holding in the company.

AIG, MetLife and Treasury announced Tuesday that they had agreed to hold the stock sales sooner than expected to seize upon the rise in MetLife’sshare price in recent weeks.

“This is the next chapter in AIG’s remarkable turnaround,” Tim Massad, Treasury’s acting assistant secretary for financial stability, said in a statement.

“We are optimistic about the prospects that taxpayers will recover every dollar invested in AIG — something that many thought would be impossible when these investments were first made.”