AIG (AIG) May Unload ILFC to Chinese Firm in Mult-Billion Deal

December 7, 2012 7:53 AM EST
American International Group (NYSE: AIG) may have found a buyer for its International Lease Finance Corp. (ILFC) unit in potentially one of the largest deals for a Chinese firm in the U.S.

According to reports out Friday, New China Trust and its Chair Weng Xianding are leading a group of investors for a $5.5 billion bid for ILFC. Other members of the group include Industrial & Commercial Bank of China Ltd. and China Aviation Industry Fund, Bloomberg reported today.

ILFC holds a 30 percent stake in the Chinese aircraft leasing market, meaning the deal would make gobs of sense for New China Trust.

AIG has been mixed with ILFC. The institution originally planned to sell the unit in 2009 in an effort to raise money to repay about $182 billion received from the U.S. as a bailout following the financial crisis. More recently, AIG shifted plans and now expects to take the unit public in an IPO.

AIG would retain a minority stake in ILFC should New China come in with a bid.

Notably, Barclays holds a 19.5 percent stake in New China Trust.

Shares of AIG are indicated for a lower opening Friday.

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