Split (isn't) the difference

30 June 2009 By Richard Beales Follow @richardbeales1

The giant US governmentsupported insurer will again have stock trading in the $20s but only because of a reverse stock split. More importantly, a fresh slate of directors brings a range of potentially useful skills. With luck, they can help recoup taxpayers sunken treasure.

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American International Group held its annual meeting on June 30. Rather than the usual glossy annual reports, the company handed out cheap printouts of the annual report, or 10K, it filed with the Securities and Exchange Commission, the Washington Post reported.

Shareholders, a body dominated by a near80% holding by the US government, voted to approve a reverse stock split to bring the company's share price from a little over $1 into the $20s. They also elected six new directors.

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