American International Group has no legal right to $20 billion of its stock held by Starr International Company==headed by its former chief executive officer, Maurice Greenberg==SICO said in its latest court papers.
The claim was made in a filing yesterday in U.S. District Court in Manhattan, where the two entities have been firing salvos in a legal battle since July in the wake of Mr. Greenberg's ouster as AIG chairman and CEO amid an investigation of improper AIG accounting.
According to the documents, SICO has furnished 700,000 pages of material to state and federal investigators probing AIG.
SICO, in its papers, noted that Mr. Greenberg's replacement, Martin Sullivan, had stated during a June 29 earnings call that "the [AIG] shares owned by SICO are owned by SICO," and called the AIG bid to assume control of the shares a "remarkable reversal of position."
Starr==based in Bermuda and originally located in the AIG outpost on the island==holds some 311 million shares, of which about 23 million are committed to paying AIG executive participants in a bonus retirement program.
Starr said it is not transferring the shares until it receives assurances from AIG that it is not an affiliate.
A representative for Mr. Greenberg's lawyers said the latest papers seek to expedite the transfer of the stock to the AIG employees while barring AIG from obtaining SICO's assets.
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