American International Group Inc. said it expects to close an agreement with the U.S. government on Friday, paving the way for share sales that could eventually enable the insurer to end its status as a ward of the state.
Preparations for what could be the biggest stock offering in U.S. history officially get under way Thursday, as AIG and government officials audition Wall Street banks for a lead role in what insiders are calling the "re-IPO" of AIG.
Top executives of multiple banks, including Bank of America Corp. chief Brian Moynihan, J.P. Morgan Chase & Co. vice chairman and deal maker James B. Lee Jr. and Morgan Stanley chief James Gorman are among those scheduled to attend a series of meetings in New York at the midtown law offices of Davis Polk & Wardwell LLP, according to people familiar with the matter.
AIG said Wednesday it plans to pay down and terminate a $21 billion credit facility from the Federal Reserve Bank of New York on Friday, issue warrants to private shareholders, and exchange the Treasury's preferred shares into common stock representing a 92.1% stake in the company. That majority stake has an implied value of over $75 billion. Treasury plans to carve it up into pieces that can be sold through several offerings.
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