AIG to hold shareholder vote on Fed bailout

A screen at the top of AIG Tower in Hong Kong shows a footage of its company logo September 16, 2008.

NEW YORK (Reuters) - American International Group Inc (AIG.N) said it will hold a shareholder vote as soon as possible on the agreement to issue warrants to the Federal Reserve for up to 79.9 percent of AIG's outstanding shares.

The central bank will receive the warrants in return for an $85 billion credit facility to be used by AIG.

AIG shares, which will be heavily diluted by the deal, have fallen sharply over the last year as the company was hit by large losses on its exposure to mortgage debt.

AIG shares were trading 12 percent higher at $2.27 on Thursday.

(Reporting by Lilla Zuill; Editing by Steve Orlofsky)