Remember as you analyze the chart that AIG underwent a 50:1 reverse split in 2010. So today's closing price of $30 equates to approximately 60 cents per share pre split. The stock has done nothing since the Fall of '08 when Geithner, Jester and Paulson schemed to save Goldman Sachs by bailing out AIG.
AIG is selling 100 million shares and the Treasury Department is selling 200 million shares. The offering is set to raise $8.7 billion. That excludes the so-called greenshoe of 45 million shares. If the underwriters take up their option to purchase all this extra stock, that would raise another $1.3 billion for the government. AIG is using the money it raises to settle litigation from the previous decade. Treasury is using the offering to reduce its stake in AIG from over 92%.
No comments:
Post a Comment