US cuts stake in AIG to less than 50pc The Treasury Department plans to sell about $18bn (£11.2bn) worth of AIG shares in what will be the fifth trimming of a stake it acquired as part of its controversial $182.3bn rescue of a company that was best known in the UK for its sponsorship of Manchester United. About $13bn will be sold to private investors, while AIG will buy back $5bn worth of shares. Robert Benmosche, AIG's chief executive, has been shrinking the company and selling assets, including some of its stake in Asian rival AIA, in a bid to lift profits. The government was forced to rescue AIG because it had underwritten billions of dollars of insurance on bets investors had made on sub-prime mortgage debt. The bail-out proved particularly controversial because a number of senior executives at AIG were subsequently awarded hefty bonuses. AIG shares have risen almost 50pc this year, a gain that is likely to have encouraged officials at the Treasury Department to dispose of more of the stake. The US needs to sell its stake at an average of almost $29 a share to break even, according to the Government Accountability Office, a watchdog that monitors government spending. Its first two sales were at $29 a share, and its subsequent two have been at $30.5. AIG shares fell on news of the government's plan and were trading down 1pc at $33.56 at midday on Wall Street.