Shares of American International Group Inc. surged Thursday as analysts speculated the company might be reconciling with former CEO Maurice "Hank" Greenberg, who could help bring private capital and other business benefits to the company.
Shares of AIG continued to climb in after-hours trading and last traded at $48.30. It finished the regular session at $47.84, up $10.15, or 27 percent. The shares have traded between $6.60 and $493.60 in the past year. AIG completed a 1-for-20 reverse stock split on July 1.
More than 148 million shares changed hands, nearly seven times the 3-month average volume of 22.3 million shares.
Investor interest was fueled by the news that the company may be working to mend the strained relationship with Greenberg, who was forced out of the company in 2005 after an accounting scandal surfaced.
"It's not just that they're shaking hands with Greenberg, there's a real financial value in doing that," said Bill Bergman, senior stock analyst for Morningstar Inc. "Given the fact that AIG would have access to capital and business opportunities could be had, the reconciliation is meaningful."
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