AIG's former CEO questions sale of Hartford Steam Boiler

By Lisa Kerner

Charlotte, N.C., Jan. 6 - The former chief executive officer of American International Group, Inc., Maurice R. Greenberg, asked the company's board of directors what it did to ensure that AIG sold Hartford Steam Boiler for the highest available price.

According to Greenberg, AIG is selling Hartford Steam Boiler to Munich Re for what Greenberg called a "distressed price" of about $742 million.

In a Jan. 5 letter to the AIG board, Greenberg said "a full explanation of the sale process is required from the board that led to approve the sale of such a major asset at such a low value."

The letter was included in a schedule 13D/A filed with the Securities and Exchange Commission.

"Certainly, selling major assets at fire sale prices is not a viable strategy for reviving the company or even repaying the government," Greenberg said in closing.

The investor has previously questioned AIG's federal government loan.

Greenberg beneficially owns 270,491,517 shares, or 10.06%, of the New York financial and insurance services company.

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