In a joint announcement American International Group and IPC Holdings, Ltd. said AIG “is commencing an underwritten public offering to sell 13.397 million IPC common shares.”
As of March 6, 2006, AIG owned 15.397 million shares – 24.21 percent of IPC’s capital. They were valued at over $431 million. IPC is currently trading on the NASDAQ Exchange between $28-$29, which values AIG’s holding at around $446 million.
AIG said it has “has granted the underwriters an option to purchase up to 2 million shares to cover over-allotments.” The bulletin then noted: “Upon completion of the transaction, if the underwriters exercise their over- allotment option in full, it is anticipated that AIG will not own any shares of IPC’s common stock. IPC will not receive any proceeds from the sale of the shares.”
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