Carl Icahn Issues Another Open Letter To AIG

Activist investor Carl Icahn wrote an open letter to American International Group Inc (NYSE: AIG) in which he argued it is "abundantly clear" that there is "only one sensible path" for AIG to follow.

According to Icahn, AIG should become a "smaller" and "simpler" company with a "path to de-SIFI" - that is to no longer be labeled as a systematically important financial institution."

Icahn continued that AIG's management's credibility with shareholders is "all but gone" and the company's upcoming strategic update presentation which is scheduled for January 26th will likely fails to present a "drastic strategic shift and instead is limited to only incremental changes."

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Icahn further suggested that if AIG's management "still resists drastic changes" then the company's Board of Directors should "take matters into its own hands."

Finally, Icahn stated that AIG's management has been "misleading in telling shareholders they have conducted any meaningful analysis of the impact a de-conglomeration strategy would have on the business."

"It would be a mistake to squander this opportunity to present a bold new strategy and instead waste investors' time providing excuses for past underperformance," Icahn concluded. "Furthermore, we believe even the announcement of isolated asset sales without a clear commitment to a transformative strategy would be a disappointment and further destroy value."

Icahn previously wrote an open letter to AIG in October 2015.