The next step in American International Group's recapitalization plan may be taken next week. AIG said yesterday that its board had approved the issue of warrants to purchase 75 million shares of common stock, which are conditioned on all the parties to the recapitalization agreeing it can close by January 14, according to a Reuters report.

Regardless of whether or not the deal does, in fact, close next week, this is one of the final steps for the insurer to finish the transaction. Reuters reports that AIG said it will issue a statement on January 12 disclosing whether all the parties have agreed that the deal can close by January 14.

The terms of the deal are laid out such that the Federal Reserve Bank of New York will be repaid in full, but the Treasury will be left with a 92.1% stake in the company.

Shortly before the end of the year, AIG signed $4.3 billion of credit agreements as part of its recapitalization plan. Administered by JPMorgan Chase & Co., the agreements include a three-year deal for $1.5 billion and a similar amount for 364 days. Chartis Inc., an AIG subsidiary, obtained an additional $1.3 billion, according to the filing.

As a result of yesterday's announcement, AIG's shares today rose to their highest level since early October 2008 Friday. The insurer's shares rose 3.1% to $62.35 in early trade. Through Thursday's close, the shares were up 34% since the September 30 announcement of the recapitalization, Reuters reports.