AIG Valuation Part II
December 17, 2010
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RELATED TICKERS: AIG
Decided to do some digging....this is what I came up with! WARNING the below may be quite shocking for existing and prospective AIG shareholders!
Exchange of Series C, E and F Preferred Stock for AIG Common Stock: At the Closing, (i) the shares of the Series C Perpetual, Convertible, Participating Preferred Stock, par value $5.00 per share (Series C Preferred Stock), held by the Trust will be exchanged for approximately 562.9 million shares of AIG Common Stock, which will simultaneously be distributed to the Department of the Treasury; (ii) the shares of the Series E Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (Series E Preferred Stock) held by the Department of the Treasury will be exchanged for approximately 924.5 million shares of AIG Common Stock; and (iii) the shares of the Series F Preferred Stock held by the Department of the Treasury will be exchanged for (a) the Transferred SPV Preferred Interests (as described above), (b) newly issued shares of the Series G Preferred Stock and (c) approximately 167.6 million shares of AIG Common Stock. After completing the Recapitalization, the Department of the Treasury will hold approximately 1.655 billion shares of newly issued AIG Common Stock, representing ownership of approximately 92.1 percent of the AIG Common Stock that will be outstanding as of the Closing.
Currrently latest 10Q AIG has approximately 136 Million shares outstanding with full government dillution total shares outstanding will increase to 1.791 Billion giving AIG at current price around $52/share a market cap of
$93 Billion! The Billion dollar question is AIG currently worth anywhere near $93 Billion!
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