Article: SICO countersues AIG in stock dispute; Greenberg-led company asks court to recognize its independent status.(News)(Starr International Co)(American International Group)(case for breach of contract )

Byline: RUPAL PAREKH

NEW YORK-The legal battle between American International Group Inc. and former affiliate Starr International Co. escalated last week when SICO filed a countersuit against the insurer, denying any obligation to surrender control over more than $19 billion worth of AIG stock.

The suit, filed in a U.S. District Court in Manhattan, comes in response to charges of breach of contract and violations of fiduciary duty that AIG leveled in a suit against SICO last month.

As part of that suit, the insurer had demanded that SICO forfeit control of its AIG holdings under certain "agreements and understandings'' whereby it "promised to ...

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