DOW JONES NEWSWIRES
The New York Stock Exchange said late Wednesday it erroneously
posted a notice of suspension and delisting for American
International Group Inc. (AIG) on its Web site.
AIG shares closed down 22% at $18.08, a day after the ailing
insurer's shareholders approved a 1-for-20 reverse stock split.
In a statement, the NYSE said AIG isn't subject to delisting,
and the post was removed upon discovery. The exchange typically
issues delisting or suspension notices when a company's stock falls
below $1 a share or its market capitalization drops below $25
million. It eased those rules amid the economic downturn as
once-healthy companies saw their share prices plummet.
Shares of companies that undertake reverse splits often fall as
investors remain skeptical about such firms' prospects.
In addition, some market participants noted that AIG's sharp
decline Wednesday could be because it is easier to short
higher-priced stocks. Also, many of those trading in AIG shares
were purely speculating and liked having the stock around $1, so
those folks likely sold Wednesday.
The New York Stock Exchange is part oF NYSE Euronext (NYX).
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356;
lauren.pollock@dowjones.com
(Geoff Rogow contributed to this report.)