Greenberg-Led AIG Investors Consider Taking Control
Published September 17th, 2008 in Musings. 0 CommentsBy Hugh Son
Sept. 16 (Bloomberg) — American International Group Inc. investors led by former Chief Executive Officer Maurice “Hank” Greenberg may consider taking control of the insurer through a proxy fight or buyout.
The investors also are considering acquiring New York-based AIG’s subsidiaries or making loans to the company. They disclosed their options today in a regulatory filing.
Greenberg may be seeking to rescue the insurer that is struggling to raise cash amid losses tied to U.S. mortgages and credit downgrades. Greenberg, who was ousted in 2005 amid a regulatory probe into accounting, controls about 11 percent of the company through personal holdings and companies he heads. The stake has plunged in value as AIG stock declined more than 90 percent this year.
Greenberg’s group is reviewing its options “in light of current circumstances relating to” AIG, the filing said.
AIG declined $1.71, or 37 percent, to $3.02, paring losses from earlier in the day when shares were down 74 percent.
Glen Rochkind, a spokesman for Greenberg, declined to comment.
To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net
Last Updated: September 16, 2008 13:12 EDT
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