Pension to SEC: Tell AIG File Full Form Friday April 15, 3:54 pm ET By Joel Rothstein
WASHINGTON (Reuters) - A major union pension plan is asking U.S. regulators to deny a bid by scandal-plagued American International Group Inc. (NYSE:AIG - News) to continue using brief disclosure forms when seeking to raise new funds, plan managers said on Friday. After missing its annual report filing deadline with the U.S. Securities and Exchange Commission, AIG is seeking permission to continue registering new securities on Form S-3' a short form that excludes financial disclosures repeated in annual reports, the company said in a March 30 statement.
Managers in charge of $700 million in pension investments for the 1.4 million member American Federation of State, County and Municipal Employees (AFSCME) want the SEC to require AIG to provide fuller financial disclosure.
"It is pretty audacious that a company that has had complete obfuscation of its financials would seek to use a short form," said Richard Ferlauto, AFSCME's director of pension and benefit policy.
An AIG spokesman did not immediately return a call seeking comment.
The longer and more complete disclosure document -- Form S-1 -- is typically used to register initial public offerings. Companies that fail to file annual reports on-time normally must also use the longer form for one year.
"Due diligence takes on heightened importance with respect to AIG because of the fluid nature of the situation and the possibility that more improper accounting and other problems will be uncovered," AFSCME Pension Plan Chairman Gerald McEntee wrote in a letter to the SEC.
AFSCME, the largest U.S. public services employees union, owns 26,965 shares of AIG, it said in a statement.