Financial Stocks Advancing; AerCap Hits All-Time High After Buying Aircraft-Leasing Finance Unit from AIG


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Financial stocks are higher, with the NYSE Financial Sector Index adding 0.6% and the S&P Financial 100 Index rising 0.5%.

In company news, AerCap Holdings N.V. ( AER ) rose to an all-time high of $34.67 a share, rising more than 39% after announcing a $5.4-billion deal with American International Group ( AIG ) to acquire AIG's International Lease Finance Corp subsidiary.

AIG will receive $3 billion in cash along with 97.56 million newly issued AER shares in exchange for its former aircraft-leasing finance unit, the last of its non-core assets AIG has shed to regain its fiscal footing and to repay government and Federal Reserve loans that kept the insurance collossus from going under during the 2008 financial crisis.

The transaction is slated to close during Q2. The acquisition will require AER shareholder approval, with Waha Capital - the company's largest individual shareholder with a 26% stake - already agreeing to vote in favor of the deal.

AER recently traded 30% higher at $32.42 a share, holding above $31.85 during Monday's session. AIG shares are ahead 1.3% at $50.36 each.

In other sector news,

(-) MVC, (-3.3%) Re-opens sales process for its U.S. Gas & Electric portfolio company after terminating a sales agreement announced in October with a company organized to acquire USG&E.

(-) EJ, (-4.8%) Online real estate site in China had to downsize a $180-mln private placement of 2.75% convertible senior notes due 2018 by 25% to $135 mln while re-offering the bonds with 2.5% price discount.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities
More Headlines for: AER , AIG

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