Investors may seek vote to curb AIG takeover
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NEW YORK - American International Group investors trying to derail a US takeover of the insurer may demand a shareholder vote on the $85 billion deal, a person familiar with the situation said.
The investors decided at a New York meeting yesterday to ask AIG for data so they can raise money and keep the government from taking a 79.9 percent stake, said the person, who declined to be identified because talks were private. Maurice "Hank" Greenberg, AIG's former chief executive, and representatives for Eli Broad, Shelby Davis of Davis Selected Advisers LP, and Bill Miller of Legg Mason Inc. attended, the person said.
The insurer, crippled by losses tied to the worst housing slump since the Great Depression, agreed last Tuesday to turn over control to the government for a federal loan of as much as $85 billion. The original terms said the United States would get warrants equal to a 79.9 percent stake, pending shareholder approval. A new description filed Friday omitted mention of warrants or a shareholder vote.
The investors "discussed possible alternatives that may exist that could relieve the taxpayers' burden while protecting" AIG stakeholders, said Mickey Kantor, a lawyer for the shareholders, in a statement yesterday. Kantor is a former US trade representative and secretary of commerce in the Clinton administration.
Shares in the largest US insurer by assets climbed 87 cents to $4.72 yesterday. The firm's stock sold for more than $72 a share in December 2006.
The shareholders want to ensure AIG will keep or recover the controlling stake if it pays off the loan in the two-year limit, the person said. About 35 people, including representatives from Dodge & Cox, met at the offices of law firm Mayer Brown, where Kantor is a partner.
New York Comptroller Thomas DiNapoli's office was to be represented because the state held 10.8 million AIG shares in a retirement fund as of Sept. 12, spokesman Jim Fuchs said.
Representatives for Broad and Davis didn't immediately return calls seeking comment. Miller declined to comment, a spokeswoman said. Dodge & Cox declined to comment, as did Greenberg's spokesman.
