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Reuters: AIG May Take ILFC Public in Q2

April 05, 2012, 07:30 AM
Filed Under: Industry News

Reuters reported that according to a report issued by CNBC, AIG is considering launching the initial public offering of its airplane leasing business – International Lease Finance Corp. in the second quarter of 2012, citing people familiar with the deal.

According to the report, the IPO would potentially value ILFC Holdings at $6 billion to $8 billion. The lower end of the range implies that ILFC is worth less than smaller rival RBS Aviation, which was sold in a $7.3 billion deal in January. AIG Chief Executive Bob Benmosche has repeatedly said the business is worth at least $8 billion.

ILFC had been pledged as collateral for the U.S. Treasury's preferred interest in other AIG assets, but AIG recently paid off those interests.

The unit reported a profit in the fourth quarter, following a $1.5 billion impairment charge in the third quarter for the declining value of older and less fuel-efficient planes.

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