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.
Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com