NEW YORK (Reuters) - Maurice "Hank"
Greenberg, the former head of American International
Group Inc (AIG.N),
which was rescued by a federal bailout, has agreed
to sell his nearly 12.9 million shares of AIG to
Starr International Co, according to an agreement
filed on Friday.
Under the agreement, Greenberg, who served as
AIG's CEO for nearly 40 years, will sell privately
held Starr International his shares for no less than
$1.25 per share.
Greenberg is the head of Starr International and
one of 12 voting shareholders of the investment
entity.
The agreement also calls for Starr to purchase
the Greenberg Foundation's 989,308 shares, Greenberg
Joint Tenancy Co.'s 25.3 million shares and
Universal Foundation's 2.1 million share under the
same terms. Greenberg controls all of the selling
entities.
Starr is also buying 10.5 million shares from an
entity called C.V. Starr and another 8.58 million
shares from C.V. Starr and Trust Inc, two other
units lead by Greenberg, according to the filing.
Starr International controls 205.8 million AIG
shares.
The agreement calls for Starr International to
purchase the shares at a price equal to the closing
price of a AIG's shares on the date immediately
prior to the closing, but for no less than $1.25 per
share.
Shares of AIG closed at $1.38 on Friday on the
New York Stock Exchange. On May 2, 2008, they traded
for $49.50.
The closing of the purchases are subject to
certain conditions.
Before the U.S. government's $150 billion bailout
in September, Starr International was AIG's largest
shareholder. In exchange for the bailout, taxpayers
received a nearly 80 percent stake in the company.
(Reporting by Ilaina Jonas; Editing by Valerie
Lee)
