A group of major shareholders at American International Group Inc. of New York have sent a chilly letter to the insurer’s board of directors, The Wall Street Journal reported.
The May 12 missive was sent by Eli Broad, former director of the firm; Shelby Davis, founder of Davis Selected Advisers LP of Tucson, Ariz., and Bill Miller, chairman and chief investment officer of Legg Mason Capital Management of Baltimore, the Journal said.
Citing a “staggering breakdown of risk controls” and “an unequivocal loss of investor confidence,” the shareholders requested a meeting with the board to discuss ways to revamp the firm’s senior management.
Together, the three men control more than 100 million shares, or 4% of the company’s stock.
The day after sending the letter, Mr. Broad, Mr. Davis and Mr. Davis’ son Christopher, a portfolio manager at the Davis firm, aired their grievances to AIG chairman Robert Willumstad.
Though Mr. Willumstad told the men that the board is taking the matter “seriously,” he and the rest of the directors have kept Martin Sullivan, chief executive of AIG, on board.
However, board insiders told the Journal that Mr. Sullivan needs to right the company’s course immediately.
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