AIG lawyer tests ex-CEO Greenberg in share dispute

By Grant McCool

NEW YORK, June 23 (Reuters) - A lawyer for AIG questioned past statements and testimony of the insurance giant's former chief executive Maurice "Hank" Greenberg on Tuesday in a trial over disputed shares between the insurer and Greenberg-controlled Starr International.

The 84-year-old Greenberg, who built American International Group Inc (AIG.N), into the world's largest insurer before he was ousted as CEO in March 2005, was asked by AIG lawyer Ted Wells why it took seven years for Starr's acquisition of AIG stock in 1970 to be put in writing.

"That's not quite correct, Mr Wells," Greenberg said before a jury on his sixth day in the witness stand before U.S. District Judge Jed Rakoff in Manhattan federal court.

At the time, he said, there were just a few partners in a small affiliated company named C.V. Starr that Greenberg continues to run today.

"If one of us got hit by a car everyone knew our intentions. I don't know why it took seven years."

He said the understanding was that if anyone took restricted stock from Starr it would immediately go to the Starr Foundation.

In later questioning, Greenberg said the acquisition of stock was put in writing in 1977 "because one of our lawyers or accountants said there was a concern about the rule of perpetuity."

Greenberg returns to the stand on Wednesday after Tuesday's testimony, which was peppered with testy exchanges with Wells, who tried to undermine the executive's credibility.