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BREAKING NEWS FROM CNBC'S KATE KELLY: AIG RE-IPO PRICES AT $29

When: Tuesday, May 24, 2011

Where: CNBC's "Fast Money"

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

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MELISSA LEE: WE GOT THE PRICING OF THE AIG SECONDARY GOT TO GO STRAIGHT TO KATE KELLY WITH THE LATEST KATE

KATE KELLY: SO MELISSA, AS PREDICTED JUST A FEW MINUTES AGO IT LOOKS AS THOUGH THE AIG BOARD AND THE TREASURY HAVE SIGNED OFF ON A 29 DOLLAR PER SHARE SECONDARY OFFERING. THIS MEANS THEY ARE GOING TO RAISE ABOUT 8.7 BILLION DOLLARS ALL TOLD JUST SLIGHTLY SHORT OF WHERE IT COULD HAVE GONE IF THEY WERE ABLE TO UPSIZE THE DEAL OR IF THE PRICE ENVIRONMENT HAD BEEN A LITTLE BIT KINDER BUT ALL IN ALL I THINK THIS IS CONSIDERED TO BE A VICTORY I MEAN AS YOU MENTIONED IT IS ABOVE THE BREAKEVEN PRICE OF 28.70 FOR THE GOVERNMENT WHICH I THINK IS BOTH ECONOMICALLY AND PSYCHOLOGICALLY IMPORTANT IN THIS CASE IM ALSO TOLD AND I MENTIONED THIS EARLIER THAT THE BOOK THEY PUT TOGETHER IS FAIRLY BROAD IN NATURE THEY HAVE A COMBINATION OF SOVERIGN WEALTH FUNDS, LONG ONLY FUNDS, HEDGE FUNDS IN THE US FOR EXAMPLE NAMES LIKE OXZIP AND PAULSON IM TOLD ARE IN THE BOOK OTHER SOVERIGN WEALTH PLAYERS LIKE GIC THE SINGAPORIAN GOVERNMENT INVESTMENT ARM IS VERY LIKELY TO BE IN THE BOOK THOSE FINAL ALLOCATION DECISIONS ARE BEING MADE AS WE SPEAK BUT ALL THOSE PARTIES HAD INDICATED A STRONG INTEREST ACCORDING TO MY SOURCES SO THEY HAD A PRETTY BROAD MIX AND WE'LL SEE HOW THINGS GO TOMORROW OF COURSE EVERYONES HOPING WHOSE WORKING ON THIS DEAL FOR A SLIGHT POP AT LEAST NOTHING TOO UNMANAGEABLE NOTHING LIKE LINKEDIN WHICH THEN RAISES QUESTIONS ABOUT PRICING BUT I THINK GENERALLY THEY PULLED IT OFF IN A DIFFICULT ENVIRONMENT EVEN THOUGH LETS BE FAIR THE STOCK IS TRADING AT SOMETHING LIKE TWO THIRDS BOOK VALUE WHICH HAS TO BE A HUGE DISAPPOINTMENT FOR CEO BOB BEN MOSCHE THE TREASURY AND OTHERS MELISSA.

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