AIG Sale Raises $8.7 Billion

Share offering leaves government with 77% stake in insurer

The U.S. Treasury Department and American International Group Inc. raised $8.7 billion in a share offering, bringing the insurer a step closer to independence after its 2008 bailout.

The Treasury sold 200 million shares yesterday at $29 each, compared with the closing price of $29.46 on the New York Stock Exchange. The government, which retains a majority stake, needs to sell shares at an average of about $28.73 to recover a $47.5 billion investment. AIG disposed of 100 million shares, raising $2.9 billion, according to a statement from the company.

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