8-KOther EventsExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Corporate Update (May 27, 2011)

Filed May 27, 2011For Securities:AIG

Summary

This Form 8-K filing by American International Group, Inc. (AIG) on May 27, 2011, reports the closing of a significant secondary public offering of its common stock. In this offering, AIG itself sold 100 million shares, and the U.S. Department of the Treasury sold 200 million shares, totaling 300 million shares at an initial public offering price of $29.00 per share. This event is highly impactful for investors as it signifies a major step in the U.S. Treasury's divestment from AIG, following the government's bailout during the 2008 financial crisis. The offering represents a substantial reduction in the Treasury's stake and a return to more normalized trading conditions for AIG's stock, potentially improving liquidity and investor confidence.

Key Highlights

  • 1AIG and the U.S. Department of the Treasury closed a secondary public offering of 300 million shares of AIG common stock on May 27, 2011.
  • 2AIG sold 100 million shares, while the Treasury sold 200 million shares in the offering.
  • 3The initial public offering price was set at $29.00 per share.
  • 4This transaction marks a significant reduction in the U.S. Treasury's ownership of AIG.
  • 5An Underwriting Agreement was executed on May 24, 2011, outlining the terms of the offering with several major investment banks.
  • 6Key legal opinions, including validity and tax opinions, are included as exhibits to the filing.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the closing of a large secondary public offering of AIG common stock, involving both AIG and the U.S. Department of the Treasury.

A total of 300 million shares of AIG common stock were sold. AIG sold 100 million shares, and the U.S. Treasury sold 200 million shares. The initial public offering price was $29.00 per share.

The U.S. Treasury's sale of 200 million shares represents a major step in its divestment from AIG, which had been a significant government investment following the 2008 financial crisis. This signals a move towards AIG operating with less government influence and potentially a full exit by the Treasury.

The underwriters for this offering included Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc., Goldman, Sachs & Co., and J.P. Morgan Securities LLC, acting as representatives of the several underwriters.