AIG said the underwriters will have a 30-day option to buy up to an additional 3.9 million Transatlantic shares from AIG's unit American Home Assurance Co (AHAC).
Transatlantic will not sell any shares in the offering, which would be worth about $988 million.
J.P. Morgan Securities Inc, Goldman Sachs & Co, and Morgan Stanley & Co Inc are the joint book-running managers with Lazard Capital Markets LLC as co-lead underwriter, AIG said in a statement.
AIG, once the world's largest insurer, has had to broadly redraw its divestiture plans after funding dried up for buyers amid the financial crisis. It has now opted to look at public offerings instead of outright sales for other businesses as well.
Shares of AIG closed at $1.64 Thursday on the New York Stock Exchange, while Transatlantic shares closed at $41.00.
(Reporting by Esha Dey in Bangalore; Editing by David Cowell) Keywords: AIG/ (esha.dey@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: esha.dey.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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