Carl Icahn turns up the pressure on AIG

Pulling Hair

Activist investor Carl Icahn turned up the pressure on American International Group to separate into three public companies.

In late October , Icahn wrote a letter to AIG CEO, Peter Hancock, outlining a plan to shrink the company. In a statement on Monday, he said that he has met with Hancock to discuss the issue on more than one occasion.

Shares of AIG were up nearly 0.4 percent in early-morning trade.

"...in all of our discussions with Mr. Hancock it was abundantly clear to us that he is not willing to take the bold steps that we, and so many other shareholders, believe are long overdue. In addition, in those conversations he failed to lay out any alternative strategic plan with the potential to unlock value for shareholders or to provide compelling reasons as to why these businesses belong together," the statement read.

Icahn Capital currently owns over 42 million shares of AIG — making it one of the company's largest shareholders. AIG is one of the largest insurance companies in the country.

In the letter, Icahn said he plans to continue discussions with Hancock, but he does not think the proposal to split is being "sincerely considered."

"As a result, we intend to commence shortly a consent solicitation that will enable shareholders to express their views directly to the board, which may include a proposal to add a new director who would agree in advance to succeed Mr. Hancock as CEO if asked by the board to do so."

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