Treasury to Sell $6 Billion Worth of A.I.G. Shares The Treasury Department said on Wednesday that it planned reduce its holdings in the American International Group, principally by selling $6 billion worth of shares in the bailed-out insurer. As part of the offering, which is expected to be completed in a few days, A.I.G. will buy up to $3 billion worth of the common stock that the Treasury Department is selling. A.I.G. also plans to repay $8.5 billion worth of preferred shares that the Treasury Department owns in American International Assurance, a former A.I.G. subsidiary that is now publicly traded in Hong Kong. The money will come from a variety of sources, including proceeds from previous A.I.G. asset sales. Through the transactions announced on Wednesday, the federal government will continue to whittle down the various holdings in A.I.G. that it gained by bailing out the insurer in the fall of 2008. Should everything go to plan, the Treasury Department will be left with a stake in A.I.G. that is worth about $41.8 billion, according to the department's statement. And the Federal Reserve Bank of New York will still be owed $9.3 billion, through a loan supporting an entity that holds some mortgage-related securities once owned by A.I.G. Those investments, known as collateralized debt obligations, were acquired by the federal government as part of its rescue of the insurer. At the same time, the Treasury Department will relinquish its claims on A.I.G."s remaining holdings in A.I.A. and a giant plane-leasing subsidiary when it receives the $8.5 billion repayment. The sale of the Treasury Department's A.I.G. common shares is being managed by Citigroup, Credit Suisse and Morgan Stanley.