Shareholders Push AIG to Avert Takeover

Sale of assets + infusion of capital = no government role
By M. Morris,  Newser Staff
Posted Sep 19, 2008 4:26 PM CDT
This March 1, 2007, photo shows the New York headquarters of AIG.   (AP Photo)
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(Newser) – In an attempt to head off the federal government's acquisition of 80% of AIG, the insurance giants' big shareholders are pushing the company to repay the government's loan quickly, the Wall Street Journal reports. Washington is on the hook for up to $85 billion under a deal struck this week to keep the company out of bankruptcy.

Attracting sufficient capital to keep the government out of the mix, which would probably require huge outside investments in addition to already-announced asset sales, offers a double benefit: It swaps equity for capital and makes exchanging equity for loans unnecessary. New CEO Edward Liddy said he was unaware of the shareholders' initiative and had no comment.