How on earth did an erstwhile insurance company, financial services company ever get involved in owning, operating and developing a ski resort? And even more importantly why has no one questioned this purchase and continued operation.
How many other ski resorts or “resorts” does AIG own.
What is the payback or ROI on AIG’s Stowe investments.
What is the “Value added” that Stowe brings to the AIG family?
What was the decision making process that took executives away from their core competencies to concentrate on the acquisition & management of a ski resort?
At what level were these decisions made?
What was the modus operandi for similar size acquisitions? Were there any?
Is/ was this the best use of intellectual capital?
Is /was this the best use of invest able capital?
Is there something not “quite right” ?
Is there some self interest being served here?
Tyco’s former CEO was imprisoned and his lavish lifestyle put firmly in the public eye. His taste for million dollar bacchanalian Sardinian exploits and $ 6000 shower curtain or was that the cost of the waste paper bin? I really can’t remember the exact details, but the drift was one of personal excess at the expense of share holders. Of course Tyco didn’t need a government backed $ 150 billion plus facility to get it through the current crisis. And frankly the extent of his malfeasance in this current climate seems downright “modest”
Would AIG’s management have served there fiduciary responsibilities better if they’d managed there credit swaps risk operation ( well obviously in hindsight) instead of spurious time spent on managing Stowe? How much time of senior management has been spent on this division? What was the genesis of the idea? I intend to get to the bottom of this. Why? Because it’s a weird acquisition for an insurance company!
If my speculation is true. The CEO purchased Stowe because he has a house in Stowe, and he could then control his personal backyard for his own good. Isn’t that the same as
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