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AIG chief rebuffs Icahn plan, says split doesn’t make sense

AIG CEO Peter Hancock dismissed activist investor Carl Icahns proposal to split the company into three insurers, saying a division would limit earnings diversity and reduce the value of some tax assets.

By Sonali Basak | Updated on November 03, 2015
AIG Chief Executive Officer Peter Hancock (Photo: AIG)

(Bloomberg) — American International Group Inc. Chief Executive Officer Peter Hancock dismissed activist investor Carl Icahn’s proposal to split the company into three insurers, saying a division would limit earnings diversity and reduce the value of some tax assets. The stock declined in New York trading.

“Management and the board have carefully reviewed such a separation on many occasions, including in the recent past, and have concluded it did not make financial sense,” Hancock said of Icahn’s plan in a conference call Tuesday. “We of course will meet with him to further share our conclusions and give him an opportunity to elaborate on his views.”

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