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
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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