American Int'l Group (AIG) To Distribute 75M Warrants as Dividend

American International Group, Inc. (NYSE: AIG) announced that, subject to the condition that the parties to the recapitalization (i.e., AIG, the U.S. Department of the Treasury, the Federal Reserve Bank of New York, and the AIG Credit Facility Trust), that they will be issuing 75 million warrants which will allow the holder to acquire AIG common stock at $45 per share. The U.S. Department of the Treasury will not receive Warrants in this distribution. The warrants will be issued as a dividend upon satisfaction of conditions before January 14, 2011. AIG common shareholders will be issued 0.533933 Warrants for every share of AIG common stock owned on the record date. Each Warrant will entitle the holder to purchase one share of AIG’s common stock at an exercise price of $45 per share, subject to anti-dilution adjustment for certain events. The Warrants will be exercisable through January 19, 2021, which is ten years from the date of issuance.... Read more

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