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Financial News Network
May 11, 2011 AT 1:52 PM
American International Group, Inc. (NYSE:AIG) announced this morning that it, along with the U.S. Department of the Treasury, have commenced a registered public offering of AIG common stock, par value $2.50 per share.AIG will sell 100 million shares, while the Treasury Department will sell at least 200 million. AIG will not receive any of the proceeds from the Treasury Department's sale. AIG intends to use $550 million of the net proceeds from the offering to fund part of a previously disclosed litigation settlement, and to use the balance of the net proceeds for general corporate purposes.At Tuesday's closing price of $29.62 per share, the total value of the offering would amount to $8.89 billion, with AIG taking in $2.96 billion, and the Treasury Dept. taking in at least $5.92 billion.Treasury has the option to sell an extra 45 million shares to cover any over-allotments.