FM Global considers bid for AIG unit
7:20 AM Tue, Dec 02, 2008 | Permalink
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FM Global, the Johnston-based property-casualty carrier, may bid for a 142-year-old American International Group Inc. business that sells coverage on equipment and power plants. "Weve had some indirect contact with AIG about a potential deal for Hartford Steam Boiler," FM Global Chief Financial Officer Jeffrey Burchill said in an interview in New York. "We would take a look based on price and market share." AIG Chief Executive Officer Edward Liddy is dismantling what was once the worlds biggest insurer to repay loans tied to the companys $152.5 billion government rescue. New York-based AIG has put its airplane-leasing subsidiary and global life insurance businesses up for auction. AIG purchased Hartford Steam Boiler, the largest North American equipment-breakdown insurer, for $1.2 billion in stock in 2000. 
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Isn't this the FM Global that Johnston gave a hard time to when they wanted to build a new headquarters ? This is a company that employees hundreds (at least) of Rhode islanders with,as far as I know,no gov't subsidy.Why they want to be here is a mystery to me ,but given their apparent unparalled solvency,shouldn't we do anything and everything to keep this company in RI ? Are you listening you bureaucratic nitwits in Johnston ?
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Joyce, the town of Johnston has fought to keep FM Global in the town and has been involved in a RI Superior Court lawsuit defending its actions. The lawsuit against the town was filed by CapLease, the landlord of FM Global's current Atwood Ave. headquarters. CapLease has been pursuing their concerns over the town's support of FM Global's construction of a new $60-million headquarters on Central Ave. in Johnston. Construction began in April 2008 and FM Global will move out of CapLease's building later in 2009. To date, CapLease has lost various formal appeals at the local (Planning Board) and state (RI Building Code Standards Committee) levels because their concerns have lacked any merit. A Superior Court decision is still pending.
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