When: Today, Wednesday, April 4th
Where: CNBC’s “Squawk on the Street”
Following is the unofficial transcript of breaking news from CNBC’s Kayla Tausche on CNBC’s “Squawk on the Street” (M-F, 9AM-12PM ET). Following is a link to Tausche’s story on CNBC.com: http://www.cnbc.com/id/46952111.
All references must be sourced to CNBC.
KAYLA TAUSCHE: WELCOME BACK TO SQUAWK ON THE STREET I’M KAYLA TAUSCHE WITH SOME BREAKING NEWS ON AIG. SOURCES TELL ME AIG IS MOVING TOWARD AN IPO OF ITS AIRCRAFT AND SPECIALTY FINANCE UNIT, ILFC THAT COULD COME SOONER RATHER THAN LATER.
AIG FILED DOCUMENTS TO TAKE ILFC PUBLIC IN SEPTEMBER OF LAST YEAR BUT ONLY LAST MONTH WAS FREED TO DO THE DEAL - AS COVENANTS FROM THE US TREASURY WERE LIFTED.
MY SOURCES TELL ME THE COMPANY IS MULLING A SECOND-QUARTER IPO FOR ILFC THAT COULD VALUE THE UNIT AT SIX TO EIGHT BILLION DOLLARS. ONE DEAL CURRENTLY BEING CONSIDERED WOULD BE A PARTIAL FLOAT FOR THE UNIT - DUE TO ITS SIZE AND CURRENT INVESTOR DEMAND. OF COURSE MANY OPTIONS REMAIN ON THE TABLE, AND MARKET CONDITIONS COULD HAMPER A DEAL. THE COMPANY FOR ITS PART DECLINED TO COMMENT.
REMEMBER THE US GOVERNMENT STILL OWNS 70 PERCENT OF ILFC EVEN AFTER LAST MONTH'S MONETIZATION - THOUGH FED CHAIRMAN BEN BERNANKE COMMENTED RECENTLY THAT AIG'S POSITION HAS "STABILIZED."
SHARES HAVE REFLECTED THAT – IF YOU TAKE A LOOK SINCE THEY'RE STILL ABOVE THE IPO PRICE, I'M HEARING A NEAR-TERM FLOAT FOR ILFC BECAUSE OF THAT AND BECAUSE OF THE WAY THE MARKET IS TRADING IT IS THE AIM.
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