Sept. 20 (Bloomberg) -- American International Group Inc., the insurer that agreed to give the U.S. a 79.9 percent stake in return for a $85 billion loan, dropped any mention of issuing warrants or seeking shareholder approval as part of the deal.

AIG issued a revised regulatory filing yesterday after the Wall Street Journal said some investors wanted to derail the U.S. takeover by helping repay the federal loan. The filing didn't explain why New York-based AIG made the revisions other than to say there were ``errors'' in the previous document.

``It's extraordinary that in a matter like this, you have a filing that says they'll go to shareholder approval one day, and the next day they're not,'' said Lynn Turner, ex-chief accountant at the Securities and Exchange Commission. ``If it's required legally, I don't know how they can do a second filing.''

The insurer, crippled by more than $18 billion in losses tied to the worst U.S. housing slump since the Great Depression, agreed to turn over control in exchange for a credit line of as much as $85 billion. AIG borrowed $28 billion as of Sept. 17, the Federal Reserve said.

``The summary of the terms also provides for a 79.9 percent equity interest in AIG'' the insurer said in the new filing. ``The corporate approvals and formalities necessary to create this equity interest will depend upon its form.''

`Not Finished'

The previous document, filed Sept. 18, said the company issued a warrant that would allow the Fed, subject to shareholder approval, to obtain 79.9 percent of the stock. The earlier filing said a shareholder meeting would be held as soon as possible.

Nicholas Ashooh, an AIG spokesman, said talks continue with the Fed. ``The agreement's not finished yet,'' he said.

Former Chief Executive Officer Maurice ``Hank'' Greenberg may try to end government involvement in the company ``as prompt as possible,'' his attorney, David Boies, said in a Sept. 17 interview. Greenberg, who saw the value of the AIG stake he controls plunge by more than $5 billion this month, has said the takeover might have been avoided if AIG got a bridge loan, tapped private investors and sold assets.

Boies said yesterday the conflicting filings made it ``really hard to figure out'' the status of the Fed agreement.

``What they did was put out something where they said they issued a warrant -- now they're talking as if they hadn't issued a warrant,'' said Boies in a telephone interview. ``You can't just issue a warrant and not issue a warrant.''

AIG didn't say whether the mistake in the first filing ``was a factual error, a legal error, or some combination,'' he said.

To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net

Last Updated: September 20, 2008 00:01 EDT