Treasury says Hartford warrants fetch more than $700 million

The Treasury Department said its auction of warrants to buy common shares of Hartford Financial Services Group Inc. will generate $706.3 million in proceeds.

 

The 52.1 million warrants brought $13.70 apiece in Tuesday's bidding. Each warrant entitles the holder to buy a share of Hartford's stock at a price of $9.79.

 

The company's shares closed Wednesday at $22.32, off 84 cents.

 

Hartford issued the warrants to the government as part of the consideration for the $3.4 billion in taxpayer aid it received through the Troubled Asset Relief Program last year.

 

The company, which bought a small thrift in order to become eligible for the program, repaid the money in April. However, it opted not to repurchase the warrants.

 

Treasury said the sale of the warrants to private buyers should be completed by Monday.

 

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