(Bloomberg) — American International Group's Sid Sankaran, who has been designated to be the insurer's next chief financial officer, said that activist investor Carl Icahn's proposal to break up the company would punish investors by jeopardizing tax assets and pressuring capital measures.
"There are material amounts of shareholder value at risk in a separation of the non-life and life companies," Sankaran said in a video message posted on the New York-based company's website Monday.
AIG Chief Executive Officer Peter Hancock and his deputies are seeking to win investor support for a more patient approach after Icahn demanded management act with urgency to shrink the company. The insurer said last week that it plans to eventually exit a mortgage-guaranty unit and designated other businesses for possible sale. Still Hancock said at the time that "there are important tax and diversification reasons that would preclude major divestitures in the short term."
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