HONG KONG/NEW YORK Aug 2 U.S. insurer American
International Group Inc is still in talks about selling
its aircraft leasing unit to a Chinese consortium after missing
a July 31 deadline to close the $4.8 billion deal, sources said.
AIG and the Chinese group are now aiming to close the deal
by mid-August, said the sources, who have direct knowledge of
Both parties had the option to shelve the deal if it did not
close by July 31.
AIG said on Thursday that as of Aug.1, it had not received
payment and the deal had not closed.
AIG is keeping all options open, including selling to a new
buyer or an IPO of the business, one of the sources said.
The sources declined to be identified as the discussions are
confidential. An AIG spokesman and a spokeswoman for the Chinese
consortium declined to comment.
The Chinese buyers' consortium, which has missed earlier
deadlines, includes P3 Investments, New China Trust Co,
one-fifth owned by Barclays Plc, and China Aviation
It struck a deal with AIG late last year to buy its
International Lease Finance Corp (ILFC) unit for $4.8 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. The agreed sale price is roughly half
of what AIG once said the business was worth.