The U.S. Treasury Department said that it expects to earn proceeds $706.26 million from the auction of stock warrants in Hartford Financial Services Group Inc.
Treasury said it sold about 52.09 million warrants at an auction price of $13.70 each. The government got the warrants as part of the $3.4-billion taxpayer bailout of the insurer, funds that have been repaid.
The warrants offering represents sale of the government’s remaining investment in Hartford. The sale is expected to close on or about Sept. 27.
These proceeds provide an additional return to American taxpayers from the bailout investment in the company beyond the dividend payments the government received on the related preferred stock.
Hartford was one of three major insurers to receive bailout funds under the Troubled Asset Relief Program (TARP). The government also rescued Lincoln National Corp. and American International Group . The government already has sold warrants in Lincoln National, which repaid its $950 million bailout. AIG, on the other hand, still owes taxpayers about $49 billion in bailout funds.
Was this article valuable?
Here are more articles you may enjoy.