AIG seek early Court date to challenge Greenberg holding

by Gill Montia

Story link: AIG seek early Court date to challenge Greenberg holding

AIG, the US insurance group, is awaiting news this week of whether a court case over a former chief executive’s holding in the company will be brought forward.

Hank Greenberg left AIG in February 2005 but continues to hold a 13% controlling interest in the company.

AIG has challenged his right to control $20 billion of the group’s shares through which he is alleged to be attempting to force through a change of management which could result in a buyout of the company.

Commentators do no believe that Mr Greenberg is attempting a return to the AIG board but he does appear to be encouraging other shareholders to argue for a change of management, with a view to a takeover of the group.

Mr Greenberg describes his actions as exploring “strategic alternatives” with other investors.

He says he believes “that there are opportunities to significantly improve AIG’s performance and strategic direction as well as the value of their investment”.

As a result, AIG is challenging Mr Greenberg’s right to his stake in the company and is working to secure an early court date, so that his attempt to lead a shareholder revolt can be curtailed.

CORRECTION: In the original article, it was stated that Hank Greenberg was currently facing criminal charges of fraud. This was incorrect, and Insurance Daily apologies for the error.

- Brian Turner, Editor