Fairholme Capital Management is seeking to engage in discussions with AIG’s management about its capital structure, Bloomberg reports. The Miami-based asset management firm, which is run by fund manager, Bruce Berkowitz, owns around 44.3 million shares of the insurer’s stock.
New York-based AIG will convert the government’s preferred investment of about $49 billion into common shares that will give the Treasury Department around 90% share. AIG, which owed around $20 billion in a Fed credit line as of last week, will use proceeds from the sales of two non- U.S. life insurers to repay the facility.
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