AIG investors see freedom ahead
Shares of AIG are rising following a report that the US government may soon sell its stake.
By Lauren Tara LaCapra, TheStreet
The Treasury Department owns $47 billion of preferred stock in AIG, which can be converted into common shares. The government holds an 80% stake in the insurer, whose market value is less than $6 billion.
Bloomberg reported today that the Treasury is forming plans to wind down its AIG stake over two years, citing unnamed sources. The process could begin as early as the fourth quarter.
Spokesmen from AIG and the Treasury declined to comment on the report.
Though still beleaguered by political concerns, AIG has made progress in its restructuring effort in recent months. Under Chief Executive Robert Benmosche, the firm has been working to sell noncore divisions, moving forward on plans to repay bailout funds to the Federal Reserve, and winding down a huge portfolio of derivatives trades that brought the insurer to its knees.
AIG shares, which had reached penny-stock territory before a 20-for-1 reverse split last year, have soared. AIG shares have gained 48% during the past year and 44% this year, as of Thursday's close at $43.25. They were up 3.8% as of 1 p.m.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.