AIG to issue warrants as part of gov't exit plan

NEW YORK: Insurance giant American International Group Inc. is issuing 75 million warrants as part of its plan to free itself from US government ownership.

The warrants will be distributed on Jan. 19 to shareholders of record January 13. The Treasury Department will not receive any of the warrants.

Each warrant will represent the right to buy one share of AIG at an initial exercise price of $45 per share, according to a filing Friday with the Securities and Exchange Commission.

AIG, based in New York, received the biggest government rescue of any financial company during the recent crisis. Its lifelines from the Federal Reserve and Treasury were worth $182 billion.