American
International Group Inc. (NYSE:AIG) could be making its way back into
the penny stock range as its shares sunk 36 cents or 22.22% on Friday to
close at $1.26 per share. If Uncle Sam, which has warrants to be about
78% of AIG's shares, was a smart investor, it would be doing everything
in its power to boost the ailing insurer's value. However, the House of
Representatives on Thursday voted to impose a 90% tax on the payouts by
AIG and other companies that get large amounts of taxpayer rescue
funds. According to reports, some analysts said this type of legislation
could destroy the competitiveness of the very financial institutions
they are trying to rescue.
Goldman
Sachs Group Inc. (NYSE:GS), whose collateral calls on its trades with
AIG in collateralized debt obligations helped contribute to the
insurer's downfall, slipped $1.98 or 1.99% on Thursday to close at
$97.32. Goldman hosted a conference call Thursday explaining its AIG
relationship and attempting to remove itself from any blame for AIG's
demise.
Among deal stocks, Avigen Inc. (NASDAQ:AVGN) was a big
winner with an 8 cent or 7.48% increase to close at $1.15 per share on
news that BVF Acquisition LLC, an affiliate of Biotechnology
Value Fund LP, Friday that it is increasing its cash tender offer for
the biotech company to $1.20 per share from $1.00 per share.
The Dow Jones Industrial Average finished Friday down 122.42 to close at 7,278.38. - Michael Rudnick
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