NEW YORK, Jan 11 (Reuters) - Former American International Group Inc's chief Maurice 'Hank' Greenberg has called for slashing the U.S. government's stake in the insurer to less than 20 percent as part of a larger plan to restructure the insurer, a source with direct knowledge of the situation said on Monday.
Greenberg has been discussing the plan with members of Congress as well as investors since the fall of 2009, with the idea of creating a structure for AIG that would yield a full recovery for U.S. taxpayers, the source said.
The plan has not found traction with the government so far, the source said, declining to be named because the talks are not public. Greenberg and AIG Chief Executive Robert Benmosche have been in regular dialogue, the source said.
Other elements of the plan include extending the term of the government's debt facility by more than 10 years and halving the rate on the government preferred stock to 5 percent, the source said.
AIG declined to comment.
(Reporting by Paritosh Bansal; Editing by Phil Berlowitz)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/deals) Keywords: AIG/GREENBERG (paritosh.bansal@thomsonreuters.com +1 646 223 6113; Reuters Messaging: paritosh.bansal.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Greenberg has been discussing the plan with members of Congress as well as investors since the fall of 2009, with the idea of creating a structure for AIG that would yield a full recovery for U.S. taxpayers, the source said.
The plan has not found traction with the government so far, the source said, declining to be named because the talks are not public. Greenberg and AIG Chief Executive Robert Benmosche have been in regular dialogue, the source said.
Other elements of the plan include extending the term of the government's debt facility by more than 10 years and halving the rate on the government preferred stock to 5 percent, the source said.
AIG declined to comment.
(Reporting by Paritosh Bansal; Editing by Phil Berlowitz)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/deals) Keywords: AIG/GREENBERG (paritosh.bansal@thomsonreuters.com +1 646 223 6113; Reuters Messaging: paritosh.bansal.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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