Treasury to sell $4.5B of its AIG stock

(CBS/AP) WASHINGTON - The U.S. government has launched an offering to sell $4.5 billion of American International Group (AIG) common stock.

The Treasury Department announced the fourth round of AIG stock sales Friday. AIG said it intends to purchase up to $3 billion of the stock being offered in this sale.

Treasury's announcement came a day after AIG reported its net income rose 27 percent in the second quarter as its property and casualty and life insurance businesses brought in more revenue.

The U.S. government stepped in with $182 billion to rescue New York-based AIG from collapse in September 2008. The company announced in June that it reduced its total government-authorized debt by more than $152 billion.

AIG still owes taxpayers $30 billion on the initial investment. The U.S. Treasury still owns about 60 percent of the company's common stock. The government has made a profit on the shares it has sold.

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