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NEW YORK—As the U.S. Treasury Department and American International Group Inc. prepared to sell up to $9 billion in AIG stock Tuesday to partially repay the government's bailout, AIG issued a filing clarifying statements it had made to potential investors about government reviews of its Chartis Inc. unit.
In a filing with the Securities and Exchange Commission, New York-based AIG said that it had “announced a clarification with respect to statements made in its retail road show presentation with respect to Chartis: The Office of the Special Inspector General for the Troubled Asset Relief Program did not review either Chartis' pricing or its reserves and the Government Accounting Office did not review Chartis' reserves.”
The Treasury Department planned to start selling about $9 billion in AIG stock Tuesday, the first such offering since the government took ownership of AIG as part of its 2008 bailout of the insurer.
In February, AIG said it was boosting Chartis' reserves to $4.6 billion. In what some analysts saw as an effort to strengthen Chartis, AIG also struck an agreement in recent months with the Omaha, Neb.-based reinsurer Berkshire Hathaway Inc. to transfer the bulk of Chartis Inc.'s legacy asbestos liabilities to National Indemnity Co.
At the end of March, AIG also named Peter D. Hancock CEO of Chartis, a move observers said could strengthen AIG overall.
NEW YORK (Reuters)—American International Group Inc. and the U.S. Treasury Department will sell nearly $9 billion in AIG stock, they said Wednesday, a huge offering but less than half of what had been contemplated earlier this year.