NEW YORK Dec 15 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
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
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.
In December 2012, AIG announced that it had reached
agreement to sell up to 90 percent of ILFC to a consortium of
investors based mainly in China for $4.7 billion, but the deal
has never gone through.
AIG has long said it regards the leasing unit as a non-core