Just days before the highly-anticipated secondary offering of American International Group shares is set to be marketed to investors, the sellers are at loggerheads with the bankers they have hired over where to price the deal, say people familiar with the matter.
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AIG
Officials from the U.S. Treasury Department, which owns 92 percent of AIG’s shares and expect to sell that stake down in chunks in the coming year or two, have indicated a desire to price the stock at level relatively close to its current trading price of about $31 , say these people.
But some of the Wall Street underwriters who are working on the deal have argued that $30 is the highest the shares could possibly be priced, these people add, and believe that a considerably lower valuation, even $25 per share, would enable the Treasury to sell a good deal more stock, more quickly. » Read More
