Shares in AIG in Frankfurt traded 5.7 percent higher early on Monday as the stock was boosted by news over the weekend that the insurer is set to take a $30 billion lifeline from the U.S. government.

On the Weekend, AIG's board approved a new rescue package that includes more lenient terms on a government investment in its preferred shares and a lower interest rate on a government credit line, two sources familiar with the matter said. (Reporting by Tyler Sitte)