US Treasury sells remaining AIG shares for $7.6bn

New York-based insurer American International Group, Inc. (NYSE: AIG) has announced the completion of an offering of approximately 234.2m shares of AIG common stock by the US Department of the Treasury (Treasury).

According to AIG, Treasury received proceeds of approximately USD 7.6bn from the sale. The sale of these shares the last of Treasury’s remaining shares of AIG marks thefull resolution of America’s financial support of AIG.

Since September 2008, America committed a total of USD 182.3bn in connection with stabilizing AIG during the financial crisis.

Since then, through asset sales and other actions by AIG, theFederal Reserve, and Treasury, America recovered its USD 182.3bn plus a combined positive return of USD 22.7bn.

Beginning in May 2011, Treasury successfully sold approximately 1.7bn shares of AIG common stock in six public offerings for total proceeds of approximately USD 51bn, including approximately USD 13bn purchased by AIG.

Treasury continues to hold warrants to purchase approximately 2.7m shares of AIG common stock the sale of which is expected to provide an additional positive return to taxpayers.

AIG’s German arm raises offer for property investor AIRE

AIG Century GmbH & Co KGaA, part of US insurance major American International Group Inc (NYSE:AIG), said on Monday it had hiked its voluntary tender offer for German real estate investor AIRE GmbH & Co KGaA (FRA:ARE) to EUR19.75 (USD23.9) a share.

When submitting its bid on 30 April, the suitor proposed to take full control of the Frankfurt am Main-based company at a price of EUR17 per share. In May, AIG Century increased the offer to EUR18.25 a share.

The additional acceptance period on the offer will close on 30 July 2012.

The revised price is at a 46.8% premium on the company’s closing on 27 April, the last trading day before AIG Century announced its intention to launch the buyout offer, and 102.8% above its estimated volume weighted average price for the six months to 27 April.

AIG Century held 7.56% in AIRE before announcing plans to present a bid for the real estate investor.

The increase in the bidding price follows an off-market acquisition at a price of EUR19.75 a share and applies to all AIRE shares tendered to AIG Century during the offer process.

The buyer, which has so far built a stake of 93.05% in its target company, will make an additional payment of EUR1.50 to shareholders who have tendered their stock during the initial acceptance period. Shareholders who tender their stock during the extra acceptance period will be paid the increased price.

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AIG’s German arm increases offer for property firm AIRE

AIG Century GmbH & Co KGaA, part of US insurance major American International Group Inc (NYSE:AIG), said on Friday it had increased its voluntary offer to take full control of German real estate investor AIRE GmbH & Co. KGaA (FRA:ARE) to EUR18.25 (USD23.20) a share from EUR17.00.

AIG Century, which held 7.56% in AIRE before announcing plans to launch its EUR17.00 per share buyout offer on 30 April, said today it had struck agreements with more of the target’s shareholders and secured about 69.5% in AIRE.

By 30 April, the buyer had received commitments from AIRE shareholders, which together with its own stake in the target firm brought its total ownership level to around 31.8%.

The revised price is a premium of 35.69% to AIRE’s closing on 27 April, the last trading day before the offer was announced, and 87.4% above its estimated volume weighted average price for the six months to 27 April.

AIG Century said it would publish the final terms of the buyout offer in the offer document as soon as it receives clearance from the German Federal Financial Supervisory Authority.

The acceptance period will start after that approval is secured.