Two-year piecemeal sale may recover $47bn stake
The US Treasury Department is considering a two-year plan to dispose its majority $47bn (80%) stake in AIG by converting preferred stock into common shares for sale on the open market, Bloomberg reports.
If AIG agrees and there is sufficient investor demand, the plan could be announced as early as the fourth quarter.
“You don’t want to dump shares all at once into the market, you want to do it in an orderly way so the market can digest them,” said Charles Calomiris, a finance professor at Columbia Business School in New York. “It’s looking like taxpayers are going to get more of their money back,” he said.
