Greenberg’s C.V. Starr May Try to Take Over Struggling AIG

September 16, 2008

A company led by Hank Greenberg, a former chief executive of American International Group, may try to take over the insurer in a proxy fight or tender offer, according to a regulatory filing.

Greenberg’s company, C.V. Starr, said in a filing on Tuesday that it continues to work with its adviser, investment bank Perella Weinberg Partners, on strategic options, including buying assets from AIG, taking it private, or trying to buy it in a proxy fight.

In order to take such steps, Greenberg would have to receive approval from the New York Department of Insurance, given strict laws governing those who hold more than 10 percent of an insurer’s stock.

A spokesman for New York Insurance Superintendent Eric Dinallo was not immediately available for comment.

AIG’s credit ratings have been cut this week, heightening concerns that it might file for bankruptcy. AIG shares were down 45 percent to $2.60 in afternoon trading.

Greenberg has been an antagonist of AIG since he left the company in 2005 amid charges of financial misconduct leveled by then-New York Attorney General Eliot Spitzer and the U.S. Securities and Exchange Commission. Greenberg denied wrongdoing.

Asked about Greenberg’s intentions, his spokesman, Glen Rochkind, said, “The statement (filing) speaks for itself.” AIG did not return a call seeking comment.

Greenberg controls about 12 percent of AIG’s stock through a personal stake and shares held in a family trust and in companies he controls.

(Reporting by Dan Wilchins, additional reporting by Lilla Zuill; editing by John Wallace)

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