Treasury prices AIG offering

THE US Treasury yesterday priced its $6bn (£3.8bn) AIG offering at $29 a share, allowing the Obama administration to break-even on its investment in the insurer as it winds down bailout programmes from the financial crisis.

The Treasury said it would sell 206.9m shares of AIG, reducing its stake in the insurer to 70 per cent from 77 per cent. AIG has agreed to buy 103.4m shares – about half the proceeds. The sale is part of efforts to exit stakes in private companies and to wind down the $700bn Troubled Asset Relief Program established to protect Wall Street during the crisis.