AIG Gives Update On Tax Treatment Of Warrants Issued via Dividend On Jan. 19, 2011

Business Wire, Inc.

NEW YORK--(BUSINESS WIRE)-- American International Group, Inc. (NYSE: AIG) announced today that the United States Internal Revenue Service has ruled that the issuance of approximately 75 million warrants distributed on January 19, 2011, to AIG's common shareholders of record as of January 13, 2011, does not qualify as a tax free stock distribution. However, based on available information and under the rules of the United States Internal Revenue Code, AIG expects that the distribution of the warrants will not be taxable (except to the extent that a holder’s adjusted tax basis in each common share on which the warrants were distributed is less than $8.70). Please refer to AIG’s website at http://www.aigcorporate.com/investors/warrants.html for additional information. No implication should be drawn with respect to AIG’s 2011 fourth quarter or annual results from the tax treatment of the warrants.

All holders of common stock that received warrants in the distribution and holders of AIG’s Equity Units that were subject to anti-dilution adjustments as a result of the distribution of the warrants should consult their own tax advisors regarding the United States federal and other tax consequences of the distribution.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

 

American International Group, Inc.
Investment Community Liz Werner (O): 212-770-7074
or
News Media Mark Herr (O): 212-770-3505
(C): 718-685-9348

 

Source: American International Group, Inc.

Copyright:	Copyright Business Wire 2011
Wordcount:	334