AIG able to buy back shares at a discount
to current market share price from the government. If my memory serves me correct, the government AIG cost is $27/shr.
AIG: Government Exit Winner
By Philip van Doorn
04/04/12 - 04:10 PM EDT
The government looking to be rid of its AIG stake by November, and "by allowing AIG to buy shares from the government 'at cost', the government's exit will increase AIG's book value by 20-30%, and EPS by 30-50%," according to Sterling, making for a "compelling opportunity" for investors.
Factoring in the government's exit plan, the analyst estimates that AIG will earn $3.38 a share during 2012, followed by 2013EPS of $4.21.