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Greenberg bails out of AIG

Former AIG Chairman and CEO Maurice “Hank” Greenberg has announced plans to sell some of his AIG stock.

In a regulatory filing to the US Securities and Exchange Commission (SEC) last week he said the action may “materially decrease” his holdings in the company. He currently holds a stake of about 11%.

Mr Greenberg was AIG’s largest shareholder before the insurer agreed to a federal bailout of $US85 billion ($101.6 billion) that will give the Government an 80% stake in the company.

Mr Greenberg’s company CV Starr may also seek to acquire control, get representation on the board or participate in a “going private” transaction, according to a September 16 filing with the SEC.