It seems that under the terms of the announced deal, the US government will be issued warrants by AIG which, if exercised, would give the government an 80% stake in the company, in return for a two-year loan of $85 billion. The use of warrants is significant, because it enables the government to control the company through the threat of massive dilution without actually aligning it with the interests of the...
¬ Haymarket Media Limited. All rights reserved.