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AOL's board also authorized the repurchase of $100 million in stock.
It approved the repurchase of $1 billion during the first quarter.
The company also said it had approved the repurchase of another $1 billion in company stock.
Anticipation of tomorrow's Treasury Department repurchase of outstanding debt also lifted bonds.
The S.E.C. and federal prosecutors are investigating how the company accounted for the repurchase of franchises.
The results exclude a pretax gain of $18.2 million from the firm's repurchase of a subordinated convertible promissory note.
Alibaba is expected to complete the repurchase of the 20 percent stake in the beginning of the fourth quarter.
It expects to complete the repurchase of $2.5 billion to $3 billion in stock by July 2012.
A.I.G. also said it had substantially completed the repurchase of $5 billion in stock from $8 billion authorized earlier in the year and planned to accelerate the repurchase of the remaining $3 billion.
A company spokeswoman said there were no immediate plans for the repurchase of shares, which rose 80 cents, to $2.48.
Michael Herley, a spokesman for Stilwell, said the company did not expect problems financing the repurchase of Mr. Bailey's shares.
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