Activist Investor Icahn Buys More Shares in AIG

Activist investor Carl Icahn has raised his stake in American International Group Inc. by 5.2 percent, putting him in a better position to pressure the insurer to split into three independent companies.

Icahn now owns 44.4 million shares in AIG, a regulatory filing showed on Monday, bringing his stake in the biggest U.S. commercial insurer by premiums to about 4 percent, according to Thomson Reuters data.

Tensions have been mounting between AIG Chief Executive Peter Hancock and Icahn over the billionaire’s suggestion in October that the company should break up – an idea Hancock promptly rebuffed.

Icahn had argued that a split would help AIG rid itself of the regulatory burden of being a systemically important financial institution, which requires higher capital cushions.

In February, the insurer agreed to add Samuel Merksamer, a managing director at Icahn Capital LP, to its board.

(Reporting by Richa Naidu; Editing by Saumyadeb Chakrabarty)

Related:

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