AIG in talks to sell ILFC to AerCap Holdings - Bloomberg

Thu Dec 12, 2013 1:22pm EST

A new sign is displayed over the entrance to the AIG headquarters offices in New York's financial district, January 9, 2013. REUTERS/Brendan McDermid

A new sign is displayed over the entrance to the AIG headquarters offices in New York's financial district, January 9, 2013.

Credit: Reuters/Brendan McDermid

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(Reuters) - Insurer American International Group (AIG.N) is in talks to sell its jet-leasing finance business to AerCap Holdings NV (AER.N), Bloomberg reported, citing people with knowledge of the matter.

Netherlands-based AerCap, the world's largest independent aircraft lessor, may team up with other bidders for International Lease Finance Corp, Bloomberg reported.

AIG has not formally terminated its agreement with the Chinese group that agreed last year to buy a majority of ILFC for about $4.2 billion, Bloomberg reported.

AIG declined to comment on the report.

Chief Executive Robert Benmosche said in November that AIG hoped to decide on a sale or an initial public offering of ILFC in the fourth quarter.

AIG said in December 2012 that it had reached an agreement to sell a stake of up to 90 percent of California-based ILFC to a consortium of investors, based mainly in China, for $4.7 billion.

ILFC is one of the biggest aircraft lessors in the world, but has recorded big write-downs in recent years on the value of the older planes in its fleet.

(Reporting by Neha Dimri in Bangalore; Editing by Kirti Pandey)

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