The U.S. Treasury can claim victory in its bailout of Citigroup with the huge “cleanup” trade completed Monday that took Treasury out of its remaining 2.4 billion shares at $4.35 a piece.
It was a well orchestrated deal that removed the overhang in Citi shares and gave the government an average of $4.15 for the 7.7 billion shares of Citi it began selling last spring.
Now, it’s on to another reclamation project, AIG (American International Group) .
Very soon, Treasury will convert all its preferred shares of AIG into common stock of the insurer, claiming almost 93 percent of the company’s total shares.
With the sale of its Citi shares complete and a successful IPO (intial public offering) of GM behind it, Treasury will turn its attention to the disposal of its vast stake in AIG.
Most likely: a road show next year in which AIG re-introduces itself to the investing public, paving the way for the first in what will be another series of offerings from Treasury of its shares.
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