Treasury Launches $18B Public Offering Of AIG Common Stock

12354_treasury Treasury Launches $18B Public Offering Of AIG Common Stock The U.S. Department of the Treasury has launched an underwritten public offering of $18 billion of its American International Group Inc. (AIG) common stock.

According to the Treasury, AIG has indicated that it intends to purchase up to $5 billion of the common stock sold by the department in this offering at the initial public offering price. The Treasury will also grant to the underwriters in the offering a 30-day option to purchase up to an additional $2.7 billion in common stock from the department to cover over-allotments, if any.

Citigroup, Deutsche Bank Securities Inc., Goldman, Sachs & Co., and J.P. Morgan Securities LLC have been retained as joint global coordinators. Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays Capital Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. have been retained as joint bookrunners for the offering.

Separately, the Treasury has begun auctions for all of its Troubled Asset Relief Program's Capital Purchase Program preferred stock positions (the CPP Securities) in four financial institutions: Alpine Banks of Colorado, based in Glenwood Springs, Colo.;
First Community Financial Partners Inc., based in Joliet, Ill.; F&M Financial Corp., based in Clarksville, Tenn.; and F & M Financial Corp., based in Salisbury, N.C.

According to the department, the offerings are expected to price through a modified Dutch auction. The auctions began this morning and will close at 6:30 p.m. EDT on Sept. 12.


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