Tuesday, November 06, 2007

Greenberg Has No AIG Credibility

Maurice "Hank" Greenberg is rattling the sabre and taking on the cloak of activist investor with AIG. Documents were filed on Friday. Greenberg owns approximately 12% of the outstanding shares. But no real substantive comment has been made by Greenberg as to what he intends to do.

Given his background with the company he should be able to speak extensively without referring to any notes.

Given his background with the industry he should have lots of critical insights that would make lots of money.

Strategic alternatives was mentioned in the regulatory filings. It takes a long time to set up strategic alternatives. Greenberg is 82 years of age. Any new idea's need to come with a built in succession plan. You know something like an insurance policy that manages apparent risk.