A Financial Times report indicates that American International Group (AIG) could soon receive an offer on its aircraft leasing unit, known as International Lease Finance Corp. (ILFC). The newspaper claims that a consortium of private equity investors, led by current ILFC CEO Steven Udvar-Hazy, "is close to making a bid for about half of the aviation-leasing business."

The consortium reportedly includes Onex, Greenbriar and Canada Pension Plan. An offer could be made as early as this week, according to FT's sources. AIG set a deadline of Dec. 3 for bids on the unit, in hopes of making a decision by Dec. 15.

Continue reading Put players target AIG after ILFC bid rumors, price-target cut

Put players target AIG after ILFC bid rumors, price-target cut originally appeared on BloggingStocks on Mon, 30 Nov 2009 11:40:00 EST. Please see our terms for use of feeds.

Reports today indicate that American International Group, Inc. (NYSE: AIG) may need yet another bailout from the federal government. This time, The New York Post states that AIG will likely require additional government guarantees before it can successfully sell its International Lease Finance Corp. (ILFC) aircraft leasing business.

"Already, the government has agreed to guarantee $5 billion of debt, but those remaining in the auction now want either more government aid or support from airline manufacturers," reports the Post. The newspaper notes that ILFC carries a $30 billion debt load, portions of which will soon mature, along with $50 billion in assets. The unit, which has been up on the auction block since last September, has a book value of $7.5 billion.

AIG shares slipped more than 6% this morning to trade at $1.46, extending their 52-week swoon of 95.7%. After smacking into resistance from its 10-month moving average, the stock is now struggling to maintain a foothold atop its recently supportive 10-week trendline.

Even though the security is trading fairly low on the charts already, some traders are betting on continued losses from AIG. Despite a 16.4% drop in short interest during the most recent reporting period, shorted shares still account for a hefty 9.7% of the stock's available float. Plus, peak put open interest in the June series lies at the 2 strike, with 17,975 contracts in residence.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.

Another bailout for AIG? originally appeared on BloggingStocks on Wed, 03 Jun 2009 11:00:00 EST. Please see our terms for use of feeds.