American International Group Inc. stated that it has hopes to square up an agreement with the U. S. government on Friday, making the way for share sales that could finally enable the insurer to come out from the tutelage of the state.

AIG was getting ready for what could be the largest stock offering in American history officially on Thursday, as both government officials and AIG interviewed Wall Street banks for taking a lead role in which according to can be termed as the "re-IPO" of AIG.

According to people, who are aware of the matter, top executives of numerous banks including. Chief Brian Moynihan of Bank of America Corp, James B. Lee Jr. deal maker and vice chairman of J. P. Morgan Chase & Co. and Morgan Stanley chief James Gorman are the men who were scheduled to attend a series of meetings in New York at the midtown law offices of Davis Polk & Wardwell LLP.

On Wednesday, AIG stated that it has plans of paying down and terminate a twenty one billion dollar worth credit facility from the Federal Reserve Bank of New York on Friday. It will also issue warrants to private shareholders. It has further plans of exchanging the Treasury's preferred shares into common stock which represents 92.1% stake in the company. That majority stake is worth over seventy five billion dollars. Treasury plans to chop it down into pieces that can be sold through several offerings.

Moody's Investors Service, late on Wednesday, had lowered its ratings on AIG and the company's two main insurance businesses by one notch to show the looming end of U. S aid. Moody's stated that, although AIG's businesses have stabilized but still the firm did not improve enough for justifying their previous ratings without taking support from the government.