Activist investor says AIG’s restucturing plan is ‘inadequate’

Carl icahn

Carl Icahn will propose an alternative board for embattled insurer AIG by the end of next week, the activist shareholder told Bloomberg.

Icahn wouldn’t name who he would put forward to sit at AIG’s boardroom table, but his company Icahn Capital last night said in a regulatory filing that its managing directors Samuel Merksamer and Courtney Mather “may serve on the boards of directors of entities in which Mr Icahn and/or his affiliates have an interest”.

Icahn has called for AIG to be broken up, with surplus cash returned to shareholders. He dismissed as “inadequate” AIG chief executive Peter Hancock’s alternative strategy announced last week.

Hancock said AIG will sell some units, including 20% of its mortgage insurance business, pump $3.6bn new capital into its general insurance business and return $25bn to shareholders.