AIG may get a lifeline for its shares

Posted Jan 27th 2009 4:02AM by Douglas McIntyre
Filed under: Deals, Amer Intl Group (AIG)

The worst may be over for AIG (NYSE: AIG), or it is getting closer.

The sale of the insurance firm's large aircraft leasing operation, International Lease Finance Corp., has drawn capital from sovereign funds which have been sitting on the sidelines as financial supporters of buyouts.

According to Reuters, potential buyer for the operation "include Singapore's Temasek Holdings Pte Ltd, Dubai's investment arm Istithmar World, Kuwait Investment Authority and China Investment Corp, the sources said." The business could be worth $10 billion.

The fact that there are any shoppers at all is a sign that the credit markets may be easing, at least for attractive deals. But, the news is important for AIG shareholders, including the US government which holds 80% of the insurance firm's shares. So far, AIG has not been able to auction off the businesses it is trying to sell because buyers can't get funding.

If the deal goes, AIG should jump from $1.26, very near its 52-week low.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Tags: AIG, International Lease Finance, InternationalLeaseFinance, inthenews, sovereign funds, SovereignFunds

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