AIG Holders Seek Bailout Alternative: Report

Major shareholders of American International Group(AIG Quote), concerned about the $85 billion loan agreement with the federal government, plan to meet Monday to discuss alternatives to the bailout plan, according to a media report.

Shareholders who are dissatisfied with the deal are exploring ways to quickly pay off the loan, which gave the federal government the right to take 80% of the insurer, the Wall Street Journal reports, citing a person familiar with the matter.

Under the scenario, AIG would not only sell assets, but also raise capital in other ways. AIG had no choice but to accept the federal help last week when large sums of private money weren't available, the Journal noted.

Among the shareholders exploring the idea are some of AIG's largest mutual-fund holders. And David Boies, an attorney for the company's former CEO Hank Greenberg, says the intention is to have Greenberg represented at Monday's meeting.

The Journal also reports departed CEO Robert Willumstad, who was replaced in the Treasury's rescue of AIG, told the company Sunday that he won't accept his severance payment of $22 million.