WASHINGTON -- The Treasury Department said Wednesday it is selling US$6 billion worth of the US$41.8 billion in common stock it holds in insurance giant American International Group Inc., which received the biggest bailout of the financial crisis in 2008.
The stock sale is a step by the government toward disentangling itself from AIG. It still owns 77 percent of the company's common shares. Treasury said AIG plans to buy as much as US$3 billion of the stock being sold.
Treasury also said it has a deal with AIG for it to repay the government's remaining US$8.5 billion preferred-stock investment in the company.
A price for the common shares wasn't specified. AIG shares closed at US$29.45 in trading Wednesday. The share price at which taxpayers would break even on their AIG investment is about US$28 or US$29.
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