AIG seen selling assets including aircraft leasing

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AIG seen selling assets including aircraft leasing

15/09/2008 02:44

NEW YORK (Reuters) - American International Group, left with deep financial scars from losses on guarantees it wrote to cover mortgage-linked securities, is expected to sell off assets, including a profitable aircraft leasing arm, the Wall Street Journal report on Sunday.

AIG is under pressure to sell off some of its most valuable assets in a bid to quickly shore up capital.

Those involved in a widespread review of the company and how to fix its deepening financial problems, are working around the clock, said a source familiar with developments.

The Wall Street Journal, on its website, said AIG could hold a call with investors as early as Monday morning. The company did not confirm those plans.

"We are considering a broad range of options," said Spokesman Nicholas Ashooh.

The company is working feverishly after posting $18 billion (10 billion pounds) in cumulative losses in the past three quarters.

Its shares were nearly halved over the last week and the stock closed down 31 percent on Friday at $12.14. That was a level not seen in nearly 16 years and a fraction of the $100 the shares fetched in 2000.

While the company has yet to disclose what parts of the business will end up on the sales block, AIG’s highly- profitable aircraft leasing arm, International Lease Finance Corp, is expected to be top on the list.

Bank of America analyst Alain Karaoglan estimates the business could fetch up to $14 billion, which would go a long way towards the $20 billion some analysts say AIG will need to add to its coffers.

(Reporting by Lilla Zuill; Editing by Andre Grenon)

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