American International Group
The New York insurance company said Wednesday that it also reached a deal with the Treasury Department allowing it to keep $2 billion in proceeds from the sale of its life insurance divisions.
AIG, which agreed to the sale in September, said it will keep its remaining insurance businesses in Japan.
AIG will issue 75 million warrants on Jan. 19 to shareholders of record Jan. 13. Shareholders who exercise the warrants stand to gain 36 percent if AIG’s stock price retains its current level of about $61.
AIG said it closed its sale of American Life Insurance Co. Monday to MetLife Inc. for $16.2 billion. It said last week that it raised $20.51 billion through an initial public offering for AIA Group Ltd.
New York-based AIG was one of the hardest hit financial companies by the credit crisis and received the largest bailout the government doled out.
The plan would begin with the Treasury Department converting $49 billion in preferred stock it holds in AIG into common shares, according to the report.