In a meeting late Tuesday, AIG's board opted to move forward with its planned secondary offering, according to someone familiar with the matter.
The insurer's re-IPO, this person said, will be formally announced before U.S. markets open Wednesday.
As part of the deal, the Treasury, which owns more than 1.6 billion AIG shares — the vast majority of its stock — intends to sell 200 million shares, plus possibly a greenshoe option, this person added. That would represent about 15 percent of Treasury's stake in the insurer.
In addition, AIG will sell 100 million shares, to make a total of 300 million shares. At market price that would make the offering worth $9 billion.