Ex-Chief of A.I.G. May Sell Some Shares, Filing Says

Maurice R. Greenberg, the former chief executive of the American International Group insurance company, may “materially decrease” his holdings in the company, whose shares have declined more than 90 percent this year, according to a regulatory filing on Thursday.

Mr. Greenberg plans to sell shares “for liquidity,” according to the filing, which did not say how much stock might be sold.

Mr. Greenberg and companies he runs owned about 11 percent of A.I.G. before it averted collapse last week by agreeing to a federal takeover.

Mr. Greenberg, 83, known as Hank, was among the investors who met Monday to discuss raising money to reduce federal involvement with the insurer. A.I.G. said the next day that it had signed a deal for an $85 billion credit line, reducing the options left for shareholders.

A.I.G., which is based in New York, dropped 29 cents, or 8.8 percent, to close at $3.02 on the New York Stock Exchange on Thursday.

“If I see my biggest advocate, and the guy with the most access out of shareholders, is essentially throwing in the towel, that’s not a good sign,” said Robert Bolton, managing director for trading at Mendon Capital Advisors.

“People are reading the smoke signals, and if he’s willing to take three bucks, maybe we should take three bucks” a share.

Mr. Greenberg still supports efforts to reduce the government dilution of A.I.G. stakeholders, said his lawyer, David Boies.

Source: http://www.nytimes.com/2008/09/26/business/26aig.html?ref=business