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BREAKING NEWS FROM CNBC'S KATE KELLY: AIG TO DECIDE ON OFFERING STATUS LATER TODAY

WHEN: Today, Tuesday, May 10th

WHERE: CNBC's "The Strategy Session"

Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. All references must be sourced to CNBC.

DAVID FABER: WE ARE GOING TO START WITH SOME BREAKING NEWS OF OUR OWN REGARDING AIG AND ITS MUCH ANTICIPATED WE LIKE TO CALL IT A RE-INITIAL PUBLIC OFFERING. IT IS A SECONDARY IN MANY WAYS EXCEPT IT'S JUST HUGE. KATE KELLY IS HERE OF COURSE WITH THE LATEST AS YOU HAVE HAD EVERY LATEST DEVELOPMENT ON WHAT IS A DEVELOPING STORY.

KATE KELLY: WE'LL TRY TO KEEP IT COMING DAVID, EVEN FROM OUR TRIP. SO AIG'S BOARD MEETS THIS AFTERNOON, AND THE COMPANY WILL MAKE A FINAL CALL AFTER THE MARKET CLOSES AS TO WHETHER TO PUSH FORWARD WITH THE DEAL, I'M TOLD, DESPITE A RECENT SLIDE IN THE PRICE OF AIG SHARES -- WHICH HIT THEIR LOWEST POINT SINCE SEPTEMBER YESTERDAY, AND ARE AGAIN SKIDDING LOWER TODAY.

PEOPLE CLOSE TO THE MATTER TELL ME IT'S UNLIKELY THE DEAL WILL BE POSTPONED -- BUT IF IT WERE, IT WOULD BE AN INDICATION OF DISSATISFACTION ON THE TREASURY'S PART TOWARD THE LEVEL AT WHICH THIS DEAL WOULD HAVE TO BE PRICED. THEY WOULD PROBABLY WAIT UNTIL A BETTER MOMENT IN TIME, I'M TOLD, WHEN AIG HAD A DIFFERENT STORY TO TELL -- AND ARGUABLY A HIGHER STOCK PRICE WHICH MIGHT BE THIS FALL AT THE EARLIEST WITH ENOUGH TIME TO PASS TO KIND OF DO THAT.

FAR MORE LIKELY, HOWEVER, IS THAT THE DEAL GOES AHEAD, WITH A PROSPECTUS TO BE FILED FIRST THING TOMORROW MORNING AND MORE DETAILS LIKELY TO EMERGE AT THE COMPANY'S 11 A.M. ANNUAL MEETING. THEN AIG MANAGEMENT WOULD HAVE A CEREMONIAL FIRST ROUND OF ROAD SHOW MEETINGS AT THE OFFICES OF THEIR UNDERWRITERS, FOLLOWED BY AN INTERNATIONAL ROAD SHOW STARTING THURSDAY. THEY'D BE DIVIDED INTO TWO TEAMS -- THEY ARE BEING NICKNAMED RED AND WHITE -- AND FINISH UP BY MAY 24, WHEN THE DEAL WOULD BE PRICED.

WE ARE UNLIKELY TO SEE A SPECIFIC PRICE ON TOMORROW'S DETAILS AND AS WITH TYPICAL FOLLOW-ONS, THE PRICE REMAINS SOMEWHAT FLUID UNTIL THE FINAL DAY. BUT THE TELL ON THIS ONE IS LIKELY TO BE THE AMOUNT OF SHARES OFFERING. AN OFFERING IN THE LOW HUNDREDS OF MILLIONS IS LIKELY TO SIGNAL A LOWER PRICE I'M TOLD AND THUS, A SMALLER OFFERING. WHEREAS A SHARE OFFERING CLOSER TO A BILLION WOULD SIGNAL MORE CONFIDENCE, DAVID, AND A LARGER OVERALL DEAL.

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