AIG Raises Bar On Raising Capital-Minyanville

AIG Raises Bar On Raising Capital

Charles Payne May 13, 2008 11:30 am


		Insurance company to aggressively shore up balance sheet.

One couldn't ask for, nor expect, a better Monday session than the one the market enjoyed yesterday. Just about everything that investors were hoping for materialized - and then some.

All things considered, American International Group (AIG) put together a really impressive, really comprehensive package. The company’s been mismanaged and appears rudderless, yet it’s been able to go well beyond its original plan to raise $7.5 billion through a combination of offerings:

171 million common shares at $34 for a total of $6.5 billion
72 million units at $75, which should raise another $5.4 billion
25.7 million underwriter options for common stock
6.4 million underwriter options on 6.4 million units

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This is a serious vote of confidence by some serious investors. I don't see the urgency to own AIG, but the discounted deal seems to have attracted a plethora of well-heeled buyers.


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Tom Chechatka

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05-14-2008, 5:48 pm
I don't know, Charles. There have been many recent votes of confidence made by some serious investors, and from what I am reading these plays are not working. John Paulson, president of Paulson & Co., was recently quoted as say Read More


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