NEW YORK (Reuters) - Maurice "Hank" Greenberg, the former head of American International Group Inc , which was rescued by a federal bailout, has agreed to sell his nearly 12.9 million shares of AIG to Starr International Co, according to an agreement filed on Friday.
Under the agreement, Greenberg, who served as AIG's CEO for nearly 40 years, will sell privately held Starr International his shares for no less than $1.25 per share.
Greenberg is the head of Starr International and one of 12 voting shareholders of the investment entity.
The agreement also calls for Starr to purchase the Greenberg Foundation's 989,308 shares, Greenberg Joint Tenancy Co.'s 25.3 million shares and Universal Foundation's 2.1 million share under the same terms. Greenberg controls all of the selling entities.
Starr is also buying 10.5 million shares from an entity called C.V. Starr and another 8.58 million shares from C.V. Starr and Trust Inc, two other units lead by Greenberg, according to the filing.
Starr International controls 205.8 million AIG shares.
The agreement calls for Starr International to purchase the shares at a price equal to the closing price of a AIG's shares on the date immediately prior to the closing, but for no less than $1.25 per share.
Shares of AIG closed at $1.38 on Friday on the New York Stock Exchange. On May 2, 2008, they traded for $49.50.
The closing of the purchases are subject to certain conditions.
Before the U.S. government's $150 billion bailout in September, Starr International was AIG's largest shareholder. In exchange for the bailout, taxpayers received a nearly 80 percent stake in the company.
(Reporting by Ilaina Jonas; Editing by Valerie Lee)
