Greenberg Takes Aim at His Former Company, AIG

November 5, 2007

Maurice “Hank” Greenberg, the former chief executive officer of American International Group Inc. who remains a big AIG shareholder, believes there are “opportunities to significantly improve AIG’s performance” and he intends to talk with other investors about pursuing them.

Greenberg said in a 13D filing with the Securities and Exchange Commission last week that he is weighing “strategic alternatives” that AIG might take to maximize the value of shares, including possibly selling off some of its divisions.

Greenberg owns about 13 percent of AIG stock.

The letter to the SEC was signed by Greenberg and representatives for other AIG investors he runs, including C.V. Starr and Starr International.

In the SEC filing, Greenberg said he plans to have discussions with other shareholders and third parties “that may address a number of issues, including without limitation, their respective views on the Issuer’s [AIG’s] business and prospects, the suggested disposition of certain of its operations, investment opportunities and concerns over the direction and management of the Issuer generally, and other opportunities to improve or realize on the value of their investment in the Issuer.”

Greenberg left AIG in 2005 when then-New York State Attorney General Eliot Spitzer questioned some of the firm’s accounting practices.

Shares of AIG have been down in the wake of concerns over its potential exposure to subprime mortgages.

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