AIG Rallies 5 Percent on Possible Sale of Plane-Leasing Unit

Tags: AIG
24 Nov 11:25pm
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Over the weekend, reports hit the Street that American International Group (AIG: sentiment, chart, options) may sell its plane-leasing unit, International Lease Finance (ILF), for $10 billion to a group of investors, including ILF management. In other news regarding AIG's asset-sale plans, China Investment Corp. (CIC) denied today that the sovereign wealth fund plans to buy a stake in the troubled insurance firm. "There's no such thing," asserted a CIC spokesman.

AIG is up about 5% this morning, boosted by news of the potential ILF sale and the government's bailout of Citigroup (C).

With the shares trading near $1.68, at least one investor is feeling strongly optimistic toward AIG. At 10:15 a.m., a block of 20,000 contracts crossed the tape on the stock's January 2009 65 call. The transaction changed hands at the ask price of 1 cent, suggesting the calls may have been bought to open.


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Schaeffer’s Investment Research, founded by Bernie Schaeffer in 1981, is a research-driven provider of investment research and recommendations featuring a unique, time-tested analysis of investor expectations. Schaeffer's contrarian approach, called Expectational Analysis®, focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription publication and it's website, www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's.