ILFC considering split-up from insurer AIG: report
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Mon, 12 May 2008 05:38:00 GMT |
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NEW YORK (Reuters) - International Lease Finance Corp, a unit of American International Group , is worried by the insurer's financial troubles and mulling a split from it, the Wall Street Journal said on Monday, citing people familiar with the matter.Officials at ILFC, a giant buyer of commercial aircraft which leases planes to air carriers, are worried that AIG's financial issues could make it tougher for ILFC to compete in the airplane leasing industry, the Journal report said.Last week, AIG posted a $7.8 billion quarterly loss after writing down assets linked to subprime mortgages.The results marked the second consecutive quarter that the world's largest insurer posted record losses. AIG also said it was replacing its chief financial officer, as operating income weakened across much of the company. Credit rating agencies Fitch and S&P cut their ratings on AIG after its quarterly report.The bad news last week from AIG was unexpected at ILFC and could lead officials there to seek changes, the Journal said, citing two people familiar with the situation.Possible alternatives could be selling ILFC to a group of investors or spinning it off, the report said, quoting one person who knew about the situation.ILFC Chief Executive Steven Udvar-Hazy, a big shareholder in AIG, has expressed concerns directly to AIG officials in New York, the report said, citing a person familiar with the situation.AIG and ILFC were not immediately available for comment.(Reporting by Aarthi Sivaraman; Editing by Quentin Bryar)
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