American International Group Inc (AIG) launched a widely-expected sale of a stake in its former Asian unit AIA, a move aimed at providing the bailed-out insurer with partial funding to repurchase up to $5 billion of its stock from the US government.
AIG’s sale of up to $2 billion of AIA Group Ltd shares comes two days after a lock-up period expired, but is just about a quarter of the $7.6 billion worth stake the US insurer owned and could have sold. AIG had already sold $6 billion worth of AIA shares in March.
With the latest sale, AIG will pocket $28.5 billion through its stake reductions in AIA, including a $20.5 billion initial public offering two years ago.
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