Reuters: Global Markets: AIG rallies to fresh high on ILFC report, Fed move

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AIG rallies to fresh high on ILFC report, Fed move Apr 4th 2012, 19:41 Tweet Share this Email Print Related News Analysis: How AIG will - or won't - generate a bailout profit Wed, Mar 28 2012 AIG says repaid government $1.5 billion Thu, Mar 22 2012 Treasury nets $25 billion profit on mortgage debt Mon, Mar 19 2012 S&P 500 ends best week since December with quiet day Fri, Mar 16 2012 Fed gives mostly high marks in bank stress tests Wed, Mar 14 2012 Analysis & Opinion Fed's Citi logic is hard to follow Why the bank dividends are a bad idea Related Topics Hot Stocks » Asian Markets » The American International Group (AIG) building is seen in New York's financial district March 16, 2009. Credit: Reuters/Brendan McDermid Wed Apr 4, 2012 3:41pm EDT (Reuters) - American International Group (AIG.N) shares rose nearly 7 percent to a one-year high on Wednesday on news that it could reap billions of dollars from asset sales in the near future. At $32.99, the highest level since mid-April 2011, the stock was up nearly 42 percent for the year, nearly four times the gains of the sector index .GSPINSC. The rally came even as broader markets fell on Wednesday. CNBC reported early Wednesday that AIG could launch the long-awaited initial public offering of its aircraft leasing business ILFC Holdings (ILFC.N) in the second quarter. While the stake to be sold was not clear, the offering would value ILFC at up to $8 billion, CNBC said. Both AIG and ILFC declined to comment. On Wednesday afternoon the Federal Reserve Bank of New York said it was considering possible asset sales from its Maiden Lane III portfolio, which was created during the bailout of AIG to buy collateralized debt obligations from certain counterparties. AIG has $5 billion of equity in the portfolio, which is accruing interest, and the company is also entitled to one-third of the profits after the Fed's loan that funded Maiden Lane III is repaid. As of last week, the fair value of the remaining portfolio was $17.46 billion and the outstanding principal and interest to the Fed was about $9 billion. The sharp rise in AIG's shares will benefit the U.S. Treasury, which still holds 70 percent of AIG's common stock after two share sales in May 2011 and March 2012. At Wednesday's prices, the government was looking at a $3.81 billion paper profit on those shares. (Reporting By Ben Berkowitz; Editing by Richard Chang) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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