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Former American International Group (NYSE: AIG) head honcho Hank Greenberg is selling his entire stake in the company -- just under 12.9 million shares -- to Starr International for at least $1.25 per share. The price will be set based on the closing price the day before the sale, but a clause in the deal prevents it from being less than that.
Who is Starr International? Glad you asked. Starr International is a privately held investment vehicle the operates for the benefit of Mr. Greenberg's charitable ventures. The Wall Street Journal reports (subscription required) that "In addition to buying Mr. Greenberg's shares, Starr International would purchase 25.3 million shares in AIG from an entity called the Greenberg Joint Tenancy Co., 10.5 million shares from C.V. Starr & Co., another firm that Mr. Greenberg heads, and other shares from affiliated entities."
At their peak, Greenberg's 12.9 million shares were worth about $1.29 billion. Meanwhile, Greenberg's legal battles with the firm he built into the 18th largest publicly traded in the world continues. Greenberg has accused the management team that succeeded him after he was pushed out by Eliot Spitzer of destroying the company, while AIG's current bosses say that it was Greenberg who sewed the seeds of the firm's destruction.
Interestingly though, the stakes get lower and lower as AIG's value continues to plummet. With little in the way of assets to satisfy any judgment, Greenberg seems to be pursuing litigation against the company for moral and/or egotistical reasons.
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Reader Comments (Page 1 of 1)
5-02-2009 @ 6:15PM
ij70 said...
"Who is Starr International? Glad you asked. Starr International is a privately held investment vehicle the operates for the benefit of Mr. Greenberg's charitable ventures."
Good one.
5-02-2009 @ 9:36PM
Kent said...
I confused Hank with the baseball legend and with Alan "Ace"
Greenberg - former CEO of Bear Sterns. TRIVIA: Cornelius Van Der
Starr founded AIU in the 20's in China which later became AIG in the 60's
selling life insurance first ever to the Chinese before the War. Last month
following that proverbial comment, "what goes around comes around"
AIG renamed itself back to AIU (American Internat'l Underwriters).
Convoluted state of affairs history-wise. Cornelius was the uncle of
Kenneth Starr the lead independent prosecuting attorney who
successfully impeached President Clinton in the House that failed to
pass in the Senate.
5-03-2009 @ 9:28PM
Blanket Dave said...
Good for him.
These AIM maggots are as bad as AOL ... Almost On Line ... in allowing people to post comments.
They allow insults from Liberals ... AOL ... Allowing Only Liberals ... but do not let these attacks or insults to be answered.
They are not worthy of investment. Quite the opposite.
Wish I had the HNIC in front of me ... they deserve a blackeye.
AOL is pathetic ... and AIM is on AOL.
5-03-2009 @ 9:44PM
Blanket Dave said...
Aig ... whatever.
Tell me these people will NOT need to be bailed out.
Tell me they will never associate with AIM, or AOL.
Never ask for tax payer money.
I have lost faith in all Corporations ... not their fault. Part of the Democratic plan.
I now hate Corporations ... because they have more of my money than I do.
Pres Obama, and the Democratic Party, are Leaches ... and bleeding this Country dry.
Sure, the idiots of the previous uneducated, so called leaders, thought bleeding would result in a cure.
Just like they apparently still do now.
They "doctor" the economy alright ... into the grave.
AIG ... partially owned by Mercedes? Has always been a performer ... pun intended.
Burn the wheels off ... putting tire tracks on the Obama Administration.
I wish you the best in this economy ... we all need it.
High performance is no longer what matters, apparently.
Just good BS, and plenty of airtime.
The ability to read a teleprompter helps :)