AIG REJECTS ICAHN’S BREAKUP PROPOSAL

AIG CEO Peter Hancock has rejected Carl Icahn’s proposal to split the company into three pieces. “Management and the board have carefully reviewed such a separation on many occasions and have concluded it did not make financial sense,” Hancock said Tuesday. AIG’s shares fell 4.4% to close at $60.99. The company also reported a 60% drop in third-quarter income late Monday and warned of $300 million in costs associated with planned layoffs.