LONDON (CNNMoney.com) -- The U.S. government and AIG are finalizing a plan for how the Treasury Department would exit its majority stake in the insurance giant, according to several published reports.
The board of AIG (AIG, Fortune 500) is scheduled to discuss the plan during a meeting with officials from the Treasury Department and Federal Reserve Bank of New York on Wednesday, the Wall Street Journal reports, citing people familiar with the matter.
According to the plan, the Treasury would exchange its preferred shares -- worth about $46 billion -- for common stock, which would be sold to private investors over time. The Journal said the conversion price could be around $35 per AIG share, and the transaction might occur in the first half of 2011. AIG shares closed at $37.32 on Tuesday.
Depending on what conversion price is decided upon, the government's stake in AIG -- which currently stands at 79.8% -- may actually have to rise to more than 90% before being gradually wound down, reports stated. 
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