Mega insurer American International Inc. (AIG) on Thursday reached a settlement with Carl Icahn, ending a three month public battle the latter launched about three months earlier. AIG said it would install two dissident directors to the company's board' hedge fund mogul John Paulson of Paulson & Co. Inc. and Icahn analyst, Samuel Merksamer. The new directors are expected to be installed on a board that will be expanded from 14 to 16 persons at the company's upcoming annual meeting in May. In addition, AIG authorized the repurchase of $5 billion in additional shares, a move that brings its buyback authorization up to $5.8 billion. It comes after the insurance giant repurchased about $11 billion in shares in 2015. In addition, AIG conducted about $2.5 billion in stock buybacks in 2016 so far. In a statement Icahn said that he continues to believe that "smaller and simpler is better" and he "looked forward to working collaboratively with the board and management to help catalyze a turnaround at the insurer's property and casualty operations as well as a more transparent operating structure."
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.