American International Group has added a news release to its Investor Relations website and echoed Treasury’s $18B sales of common stocks. However, we are still not exactly sure when this sale will happen.
Here is the link http://www.aigcorporate.com/newsroom/index.html
“NEW YORK–(BUSINESS WIRE)–Sep. 10, 2012– American International Group, Inc. (NYSE: AIG) today announced that the U.S. Department of the Treasury (Treasury) has priced an offering of approximately 553.8 million shares of its AIG common stock at the initial public offering price of $32.50 per share. Treasury has also granted a 30-day option to the underwriters for the offering to purchase up to an additional approximately 83.1 million shares to cover over-allotments, if any. In connection with Treasury’s offering, AIG has agreed to purchase approximately 153.8 million shares of AIG common stock in the offering at the initial public offering price for an aggregate purchase amount of approximately $5 billion.
“This offering, Treasury’s largest to date, makes America whole on its investments in AIG plus a profit,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We are close to achieving what most outside AIG thought unimaginable. The people of AIG never lost faith, kept working, and are grateful for being given the chance to make good on this goal.”
Treasury currently owns approximately 53.4 percent of AIG’s common stock outstanding. Assuming completion of this offering and a $5 billion share repurchase at the initial public offering price of $32.50 per share, Treasury would own approximately 21.5 percent of AIG’s common stock then outstanding (approximately 15.9 percent if the over-allotment option is exercised in full).
Citigroup, Deutsche Bank Securities Inc., Goldman, Sachs & Co., and J.P. Morgan Securities LLC have been retained as joint global coordinators for the offering. BofA Merrill Lynch, Barclays Capital Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC and Credit Suisse Securities (USA) LLC have been retained as joint book-runners for the offering.”
I just sold all LEAPs call of AIG last Thursday, and I am now looking for another chance to dive back in when AIG price tanks. We will keep our eyes open on this.
About Timeless Investor
My name is Samual Lau. I am a long-term value investor and a zealous disciple of Ben Graham. And I am a MBA graduated in May 2010 from Carnegie Mellon University. My concentrations are Finance, Strategy and Marketing.
TimelessInvestor
AIG echoes news of $18B common stock sales
American International Group has added a news release to its Investor Relations website and echoed Treasury’s $18B sales of common stocks. However, we are still not exactly sure when this sale will happen.
Here is the link http://www.aigcorporate.com/newsroom/index.html
“NEW YORK–(BUSINESS WIRE)–Sep. 10, 2012– American International Group, Inc. (NYSE: AIG) today announced that the U.S. Department of the Treasury (Treasury) has priced an offering of approximately 553.8 million shares of its AIG common stock at the initial public offering price of $32.50 per share. Treasury has also granted a 30-day option to the underwriters for the offering to purchase up to an additional approximately 83.1 million shares to cover over-allotments, if any. In connection with Treasury’s offering, AIG has agreed to purchase approximately 153.8 million shares of AIG common stock in the offering at the initial public offering price for an aggregate purchase amount of approximately $5 billion.
“This offering, Treasury’s largest to date, makes America whole on its investments in AIG plus a profit,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We are close to achieving what most outside AIG thought unimaginable. The people of AIG never lost faith, kept working, and are grateful for being given the chance to make good on this goal.”
Treasury currently owns approximately 53.4 percent of AIG’s common stock outstanding. Assuming completion of this offering and a $5 billion share repurchase at the initial public offering price of $32.50 per share, Treasury would own approximately 21.5 percent of AIG’s common stock then outstanding (approximately 15.9 percent if the over-allotment option is exercised in full).
Citigroup, Deutsche Bank Securities Inc., Goldman, Sachs & Co., and J.P. Morgan Securities LLC have been retained as joint global coordinators for the offering. BofA Merrill Lynch, Barclays Capital Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC and Credit Suisse Securities (USA) LLC have been retained as joint book-runners for the offering.”
I just sold all LEAPs call of AIG last Thursday, and I am now looking for another chance to dive back in when AIG price tanks. We will keep our eyes open on this.
About Timeless Investor
My name is Samual Lau. I am a long-term value investor and a zealous disciple of Ben Graham. And I am a MBA graduated in May 2010 from Carnegie Mellon University. My concentrations are Finance, Strategy and Marketing.