Berkowitz Says He'll Keep AIG Shares, A 'Cornerstone Investment'
By Erik Holm, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- On a day when American International Group Inc. (AIG) completed its long-discussed recapitalization plan, the insurer's largest non- government shareholder said he considered his investment in the company to be a "cornerstone investment" that he wouldn't be selling any time soon.
"It's a great company, a great franchise, and we look forward to the company paying back the remainder of what it owes to U.S. taxpayers and moving forward," said Bruce Berkowitz, the head of mutual-fund manager Fairholme Capital. "We are planning to be long-term shareholders."
AIG shares were down sharply for most of the trading day, both before and after AIG formally announced that it had repaid all its obligations to the Federal Reserve Bank of New York. Some attributed the decline to earlier speculation that Fairholme was selling its stake. The stock was down 5.8% to $ 53.85 in afternoon trading.
The plan now is for Treasury to collect about $20 billion from sales of equity stakes AIG currently holds in several companies, and recover $48 billion by selling off its 92% ownership in the insurer - more than 1.6 billion shares -- in a series of sales, the first slated for this coming spring.
Fairholme owned 32% of the shares not held by the U.S. as of Jan. 10.
-By Erik Holm, Dow Jones Newswires; 212-416-2892; erik.holm@dowjones.com
www.nasdaq.com/aspx/...keep-aig-sharesa-cornerstone-investment
1 Aktie,die man nicht 10J. zu halten bereit ist,darf man auch nicht 10Min. besitzen. Warren Buffett