The US government may next week announce a plan to exit its stake in the insurance giant American International Group Inc, says a media report.
Two years ago, the government rescued AIG from collapsing by providing more than $180 billion bailout funds and in return it acquired nearly 80 per cent stake in the firm.
"The Obama administration is pressing aggressively for a deal to end its support to the American International Group and hopes to have a completed plan to announce by next week," The New York Times reported.
The Treasury Department aims to convert its AIG stake to common stock in a deal that would be completed by the end of the year, the report said citing two people briefed on the negotiations.
The Treasury would sell those shares to private investors over time, it added.
According to the publication, the company has been negotiating for weeks with officials from the Federal Reserve Bank of New York and the Treasury, as well as with representatives of a trust holding AIG stock that was set up on behalf of the nation's taxpayers.
"All three parties would like to end their relationship with AIG as soon as possible. If they sell their shares too quickly, though, it could drive down the companys market value, which in turn determines the amount of money that will be returned to taxpayers," the publication reported.
© 2024 Rediff.com -