Greenberg, Starr To Sell $278 Million In AIG Stock

NU Online News Service, March 23, 1:25 p.m. EST

Maurice Greenberg's Starr International will sell 10 million shares in American International Group, relinquishing the bulk of its common stock holdings in a deal with UBS Securities LLC worth more than $278 million, the firm reported.

In a filing with the Securities and Exchange Commission last week, Starr International said it will sell 10 million of its close to 14 million common stock shares in AIG in a variable pre-paid forward sale.

Under the terms of the deal, Starr will deliver 2.5 million shares, or a cash equivalent, to UBS beginning 34.5 months after March 17.

The deal sets a floor level for the price of the stock at $31.22 as averaged five days prior to the settlement date. Over that price, the agreement kicks in a series of complex calculations to determine the amount of the sale.

According to the filing, the deal does not appear to involve the 114,386 shares owned directly by Mr. Greenberg or other holders of AIG stock tied to Starr.

Mr. Greenberg, the chairman and CEO of C.V. Starr and Company led AIG as its chief executive officer for nearly 40 years until he was forced to resign after an accounting scandal in 2005.

A spokesperson for Starr said there would be no comment.