Former American International Group chairman Maurice R. Greenberg in a filing with the Securities and Exchange Commission today questioned whether AIG received the best price for its sale of Hartford Steam Boiler to Munich Re.

Mr. Greenberg, the chairman and chief executive officer of C.V. Starr & Co., who left as AIG CEO in 2005 after an accounting scandal, has retained control of substantial stock holdings in AIG and has been a constant critic of the company with which he is embroiled in ongoing lawsuits over his past tenure.

Mr. Greenberg, in a letter to the AIG board of directors that was filed with the SEC, said the $742 million sale of Hartford Steam Boiler to Munich Re "can only be viewed as a distressed sale price."

AIG has been selling off assets to pay off billions in government loans it secured to keep the company afloat after a liquidity crisis brought on by the conglomerate's involvement with the subprime mortgage market.

"We believe that a full explanation of the sale process is required from the board that led to approve the sale of such a major asset at such a low value," Mr. Greenberg wrote.

Mr. Greenberg said he wanted to know if the company was sold "for the highest available price" and who the other bidders were. He asked what data was provided, and to whom, about the business. He also inquired about what market checks were done to assure the highest price.

Mr. Greenberg went on to ask if a higher bidder should emerge can the company accept that bid without penalty or significant break-up fee.

Finally, he wanted to know why the sale was being made at this time in such an unstable economy.

"Certainly, selling major assets at fire sale prices is not a viable strategy for reviving the company or even repaying the government," Mr. Greenberg wrote.

As a major shareholder, he said he and other shareholders are entitled to a prompt reply to these questions "to satisfy ourselves, and all shareholders, that the board has carried out its fiduciary duties responsibly."

Mr. Greenberg at one point controlled approximately 11 percent of the AIG conglomerate's stock through a personal stake, several foundations, C.V. Starr and other companies that he controls, but in an SEC filing last year he said he would be selling shares "for liquidity and other purposes" and the sales could materially decrease his stock ownership.

His latest letter did not threaten any actions, but did "reserve all our rights in connection with this matter."

A spokesman for AIG said the company had no comment on the letter.

AIG's obligation to the government has been put at over $100 billion, but AIG has disputed that figure, saying it is much lower.

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Greenberg Questions AIG Hartford Steam Boiler Sale Price

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