U.S. insurer American International Group (AIG.N) is valuing its aircraft-leasing business, which it is in talks to sell to AerCap Holdings NV (AER.N), at $5 billion, the Wall Street Journal reported on Sunday. Citing people knowledgeable about the talks, the paper said the price would include $3 billion in cash and a minority stake in the Netherlands-based AerCap valued at approximately $2 billion.Reuters reported on Friday that the two companies were in discussions about a sale.AIG had to be bailed out by the U.S. government when derivative bets nearly wiped it out in the global financial crash of 2008, and has been trying for at least four years to sell California-based International Lease Finance Corp (ILFC) to help repay the government.If AerCap acquires ILFC, currently the world's second largest aircraft lessor by fleet size behind only General Electric 's Gecas unit, the combination would become the world's largest aircraft-leasing company. Gecas has a fleet of 1,700 passenger jets.
American International Group, Inc. (AIG) is a global insurance company. Shares of AIG traded higher by 0.63% or $0.31/share to $49.73. In the past year, the shares have traded as low as $34.22 and as high as $53.33. On average, 9804690 shares of AIG exchange hands on a given day and today's volume is recorded at 8262769.
AerCap Holdings N.V. is an integrated global aviation company. Shares of AER traded higher by 4.27% or $1.02/share to $24.93. In the past year, the shares have traded as low as $13.37 and as high as $24.93. On average, 382447 shares of AER exchange hands on a given day and today's volume is recorded at 3572681.
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