Just more government waste paid for by the US taxpayers.
(Reuters) – American International Group Inc (AIG.N) will sell nearly all of aircraft leasing business ILFC (ILFC.N) to a Chinese consortium for up to $4.8 billion, in a deal that gives the fastest growing aviation market easier and cheaper access to planes.
But the sale is at a far cheaper price than AIG sought and will lead to a substantial loss, the insurer’s price for getting out of its last major non-core asset following the U.S. government bailout of the company in the financial crisis.
Chinese firms have previously shown interest in aircraft leasing, and the deal would give China access to a global network of about 200 airlines in 80 countries. China is already ILFC’s largest market with 180 planes operating there, giving it 35 percent market share.
[…]AIG, which had said on Friday it was in talks about a sale to Chinese buyers, will submit the offer for review by the Committee on Foreign Investment in the United States, or CFIUS, which vets foreign deals for security concerns.
In September, the U.S. Treasury cut its stake in AIG to below 16 percent of the outstanding shares from around 53.4 percent. It may have an awkward situation to address, though. Besides being AIG’s largest shareholder, the Treasury also chairs CFIUS.
[…]AIG received a $182 billion U.S. government bail-out following the global financial crisis, and has been selling off assets worldwide as part of a wider divestment plan. ILFC was considered the last major piece to be sold off.
AIG shares fell 1.6 percent to $33.59 in morning trading on the New York Stock Exchange. Analysts said it was a good deal for the company but nothing to inspire investors, given the loss AIG will record on the sale.
[…]AIG said it would record a non-operating loss of $4.4 billion on the sale, including a charge for tax-related items.