AIG, MetLife Reach Agreement On Share Sales

Associated Press
March 02, 2011

WASHINGTON -- American International Group Inc. says it is taking another step towards repaying the government's $182 billion bailout package.

The company has reached an agreement with MetLife Inc. to sell more than 78 million shares of MetLife's common stock and another 40 million equity units valued at $3 billion. AIG received the securities as part of the $16.2 billion sale of its American Life Insurance Co. subsidiary to MetLife last November.

MetLife has agreed to allow AIG to sell the securities earlier than planned. AIG initially promised to hold the securities for at least nine months.

Proceeds from the sale would be used to repay the $18 billion AIG still owes the Treasury Department. The company repaid $21 billion that it owed the New York Federal Reserve Jan. 14.

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