The company which in March took $1

The company, which in March took $1.2 billion in funds fromthe U.S. Treasury’s Capital Purchase Program (CPP), has said itplans to repay the funds as quickly as possible The fourth-largest U.S. credit card network will grantunderwriters an option to purchase up to an additional 15percent of the shares, depending on demand, it said in astatement. Discover’s stock had closed up 36 cents, or 3.6 percent, at$10.50 on the New York Stock Exchange. The shares have lost 26percent of their value in the last 12 months J.P. Morgan Securities Inc is acting as sole book-runningmanager for both the common stock and proposed senior notesofferings. (Reporting by Sweta Singh; Editing by Richard Chang) Stocks Mergers & Acquisitions Bonds.

(Recasts throughout to add details from closing arguments,background) Stocks By Lilla Zuill NEW YORK, July 6 (Reuters) – Maurice “Hank” Greenberg,former chief executive of American International Group Inc(AIG.N), fabricated documents and lied under oath in a bid torewrite history and cloud who is the rightful beneficiary of avaluable block of AIG stock, AIG lawyer Ted Wells told afederal jury on Monday. Wells called Greenberg’s assertions at trial that thebeneficiary was always a charitable trust no more than anattempt to cover up a pledge made 35 years earlier. AIG contends Starr International, a private company thatwas once closely affiliated with the insurer, formed a trust inthe 1970s to hold AIG stock to fund a retirement plan forsenior managers. The compensation plan was thrown out withindays of Greenberg’s ouster from the insurer in 2005.

“What do they do when Greenberg is fired? They go out andrescind .. their oath That is part of the cover-up,” saidWells. David Boies, a lawyer for both Greenberg and StarrInternational, told the court that AIG was the one guilty offabrication. “The truth is that AIG has made up (the trust) forthe purposes of this litigation.” An eight-person federal jury has the task of decidingwhether the trust that AIG claims was established was breached,and whether Starr International unlawfully sold shares to fundinvestments across the world Billions of dollars are at stake. If AIG wins, StarrInternational could have to cough up as much as $4.3 billion inproceeds from stock sales over the past three years, andrelinquish 185 million shares of AIG stock. Starr says theproceeds of sales were closer to $2.9 billion.”They ought to get zero,” said Boies, referring to how muchmoney he thought AIG deserved.

Boies told the jury on Monday that AIG’s legal team hadfailed to come up with anyone willing to testify that there wasever a formal agreement between AIG and Starr Internationalrelated to the stock. “A huge company contends that there is ahuge trust for its benefit and cannot produce a singlewitness,” he said. Boies also chastised AIG for taking shots at his client’scharacter: “No basis for any of the kind of charges that weremade against Mr. Greenberg.” Greenberg, 84, who testified over several days early in thetrial and sat through much of the proceedings, was in thecourtroom on Monday, sometimes scribbling notes, other timesholding hands with his wife Corinne, who sat at his side. Greenberg continued to run Starr International after he wasfired from AIG amid an internal investigation into accountingpractices at what was once the world’s largest insurer. Theblock of AIG stock held by Starr was worth more than $23billion at one point.

Judge Jed Rakoff ruled at the start of the trial threeweeks ago that investigations surrounding Greenberg’s ouster,the U.S. government’s bailout and controversial bonuses to AIGexecutives could not be brought up, saying the matters wereirrelevant to the case at hand. AIG said, subject to approval, it would use any damages torepay taxpayer debt from its bailout. On Tuesday Rakoff is to give instructions to the jurybefore it begins deliberations.