Treasury to auction The Hartford warrants
by Associated Press
Published: September 20,2010
WASHINGTON — The Treasury Department announced it would auction 52 million warrants it holds from The Hartford Financial Services Group tomorrow. It is the latest effort to recoup costs of the $700 billion financial bailout.
In its announcement today, Treasury set a minimum bid price of $10.50 per warrant. A warrant gives the purchaser the right to buy common stock at a fixed price.
The government obtained the warrants when it provided Connecticut-based Hartford Financial $3.4 billion in support from the bailout fund in June 2009. That was done to help shore up its capital position during the financial crisis.
Sale of the warrants will sever the remaining ties Hartford Financial has with the bailout fund, known as the Troubled Asset Relief Program. Financial institutions have been eager to cut all ties to the TARP to escape various restrictions, including limits on dividend payments and executive compensation.
By purchasing the warrants, holders will have the right to buy an equal amount of shares of Hartford Financial at a price of $9.79.
Hartford Financial stock closed on Friday at $22.50 and over the past year has traded in a range of $18.81 to $30.46.
The government stepped in to help the insurance companies after they incurred large investment losses during the financial crisis.
To sign up for Mississippi Business Daily Updates, click here.
Twang & Tourism: The Country Music Trail
Still planning that summer vacation?
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Study: Mississippi has highest sales tax rate in U.S.
- Prescription for success — Transcript Pharmacy continues fast growth
- MSU researchers develop timber-management software
- New law on taxing methods hailed as big win for businesses
- Panther Creek megasite — Putting a value proposition out there
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- BBB issues warning involving asphalt paving scam
- Running luxury car dealerships, like Mercedes of Jackson, comes naturally to Trudy Higginbotham Moody
- Chris McDaniel responds to radio show audio clip