Carl Icahn Says He Does Not Believe AIG CEO Will Consider Breakup Proposal

Activist investor Carl Icahn said Monday he has commenced a consent solicitation that will allow AIG Inc. shareholders to express their views to its board, as he continues to lobby management to break the company into three. In a statement, Icahn said he now owns more than 42 million AIG shares and continues to believe the company should break up to shrink itself below the threshold for systemically important financial institutions. Other institutional investors have told Icahn they support his views, he said. However, talks with AIG Chief Executive Peter Hancock left Icahn unconvinced that he "will ever sincerely consider" his proposal. "Nor do we believe that the AIG board of directors will respond to the demands of AIG shareholders absent a clear mandate," he wrote. As a result, Icahn is seeking to add a new director to the AIG Board, "who would agree in advance to succeed Mr. Hancock as CEO if asked by the board to do so." AIG shares were up 0.5% in premarket trade, and are up 11.1% in the year so far, while the S&P 500 has gained 1.5%.