The US government will audition bankers to manage a public offering of its stake in insurer American International Group, according to a report on Saturday in the Wall Street Journal. Citing "people familiar with the matter" the paper said auditions would be this coming week in New York. An AIG spokesman declined to comment on the report on the Journal's web site.
Treasury and AIG officials will meet with representatives of 10 banks seeking to play a part in the stock offering, the paper said. AIG received the largest bailout of the credit crisis, at one point owing the US government more than $182 billion. The government now stands to make a huge profit on the deal with a series of stock sales starting as soon as March. The company said on Thursday its board had approved the issuance of warrants to buy 75 million shares of common stock, subject to all the parties to the recapitalization agreeing it can close by January 14.
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