AIG (AIG), AerCap (AER) in Talks Over AIG's Jet-Leasing Unit

(Updated - December 12, 2013 2:00 PM EST)

AerCap (NYSE: AER) shares rocketed higher on volume Thursday afternoon following news that it and American International Group (NYSE: AIG) might be in talks over AIG"s ILFC unit.

Bloomberg noted that AIG hasn't formally broken off talks with a P3 Investments-led Chinese group which was aiming to purchase a majority of International Lease Finance Corp. (ILFC) for about $4.2 billion.

AerCap might also team up with other bidders to acquire ILFC. The company currently has about $15 billion worth of assets owned and under management.

AIG has been looking to unload ILFC -- it's jet-leasing business -- since 2008. Amid repaying its U.S. government bailout in full last year, the firm has been focused on its U.S. life insurance and global property-casualty insurance businesses.

AerCap recently said it has a debt-to-equity ratio at 2.6 times and the company said that level might go to 3.5 to 4.0 times should an extremely attractive opportunity present itself.

Shares of AerCap are up nearly 6 percent.

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