Former AIG chief Greenberg wants AGM postponed
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Mon, 12 May 2008 19:50:00 GMT |
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NEW YORK (Reuters) - Maurice "Hank" Greenberg, former chief executive of American International Group Inc , has said the company is in "crisis" and called on the insurer to postpone its annual general meeting scheduled to take place later this week, according to a letter he sent to the board of directors."Several top shareholders of AIG have called me expressing deep concern about the persistent and seemingly endless destruction of value at AIG," Greenberg said in the May 11 letter to the board, a copy of which was filed with the U.S. Securities and Exchange Commission on Monday.The letter followed AIG's reporting a $7.8 billion first-quarter loss last Thursday, its largest ever, as a result of a large write-down to the value of securities linked to subprime mortgages."AIG is in crisis," Greenberg added and called on the company to postpone its annual general meeting, which is scheduled for Wednesday."The company's shareholders need to absorb the significance of the company's first quarter losses," wrote Greenberg, who is chairman of C.V. Starr and Starr International, entities that were once affiliated with AIG, and continue to be the insurer's largest shareholders.Along with a personal stake, Greenberg controls roughly 12 percent of AIG stock, according to Reuters data."They (investors) also need time to consider the board's response to the crisis and the issues raised by this letter."For this reason and others, a postponement of this week's annual meeting should be considered, so that all shareholders can give careful thought to how best to move AIG forward," Greenberg added.AIG shares were down 4.4 percent at $38.51 in late afternoon trading.(Reporting by Lilla Zuill; Editing by Andre Grenon)
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