AIG's CEO At Odds With Chairman Over Failure To Sell AIA -FT

24th Jun 2010 23:32

DOW JONES NEWSWIRES American International Group Inc.'s (AIG) chief executive and chairman are at odds over the company's failure to sell its Asian life insurance unit, AIA, to Prudential PLC (PRU.LN, PUK), the Financial Times reports Thursday, citing people close to the situation. The relationship between CEO Robert Benmosche and Chairman Harvey Golub isn't yet at a breaking point, the people told the newspaper, but the strain has created concerns that one of the executives could leave AIG. Both Benmosche and Golub were appointed to their posts last August. Benmosche had argued for lowering the $35 billion asking price for AIA, as Prudential requested. However, Golub and AIG's board rejected the price reduction, leading to the deal's collapse. Representatives of AIG and the U.S. Treasury Department declined to comment to the FT. The U.S. government has an 80% stake in the insurer. Full story at http://www.ft.com/cms/s/0/0fe880a0-7fd1-11df-91b4-00144feabdc0.html -Dow Jones Newswires; 212-416-2900 (END) Dow Jones Newswires June 24, 2010 18:32 ET (22:32 GMT)