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How Obama will Win with AIG victory Lap.

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April 04, 2012 – Comments (1) | RELATED TICKERS: AIG

 

Obama's AIG Victory Lap Could Come Before November

Forbes

Bernstein Research is out with a note upgrading American International Group Tuesday, and analyst Josh Stirling ponders whether the Obama Administration may look to exit its remaining equity stake in the insurer and take a bow before the November election.

“We would buy AIG’s stock today,” Stirling writes, “for in this improving market, we believe AIG will be able to sell its remaining non-core assets in coming months, anchor further offerings ‘at cost’ by the Treasury, and perhaps even exit the government in time for a ‘victory lap’ before this fall’s election.” The combination “will drive book value, earnings, and eliminate the number one reason ‘not to own’ this discounted name.”

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1 Comments – Post Your Own

#1) On April 04, 2012 at 4:00 PM, IBDvalueinvestin (99.19) wrote:

AIG to spin off aircraft unit in IPO worth at least $8 Billion.

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.

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.

 

 

 

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