(Source: Associated Press/AP Online)
NEW YORK - American International Group Inc. said late Thursday it priced a secondary public offering of 26 million shares of Transatlantic Holdings Inc. at $38 each.
The offering would raise proceeds of $988 million.
The offering is the latest move by the U.S. insurer to shed assets to repay a government loan package worth $180 billion. On Tuesday the company agreed to sell all of its shares in its consumer-finance operations in Argentina to an Argentine bank and an investment group.
AIG gave the underwriters of the Transatlantic offering a 30-day option to buy up to an additional 3.9 million shares.
The stock is owned by AIG and its subsidiary, American Home Assurance Co. The offering is targeted to close on June 10.
AIG is selling assets and spinning off some subsidiaries as it looks to raise new cash to repay government loans while becoming a smaller, more-efficient company.
The insurer was saved from collapse in September when the government provided it with an initial $85 billion lifeline. Including the initial loan, AIG has received four rounds of government support to help it remain in business amid fears that a full collapse of the company would create widespread devastation in the financial markets.
Transatlantic shares finished Thursday's trading at $41.
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