Carl Icahn, billionaire investor, is criticizing AIG’s (AIG) CEO for not taking the “bold steps” to move the company forward.
Icahn currently owns more than 42 million shares of the insurance company stock, making him the fifth largest shareholder. The activist investor sent Peter Hancock, CEO of AIG, a public letter in late October, stating that the company continues to underperform and was “too big to succeed.”
During the financial crisis, AIG nearly failed and needed to be bailed out by the U.S. government. Icahn argues that the company has not done enough to make itself smaller since the crisis. In the letter, Icahn states that splitting the company up would increase shareholder value.
In a new letter published on Monday, Icahn notes that his conversations with Hancock have gone nowhere. Although he vows to continue his dialogue with Hancock, Icahn has stated that he does not think these recommendations would be taken seriously.
Icahn is now suggesting the appointment of a new director to the board. The director would agree to succeed the current CEO if the board asked him to do so. Icahn also noted that he would be reaching out to shareholders to initiate a consent solicitation soon.
AIG shares were up this morning 0.6% to trade at $62.61.