American International Group is moving toward an initial public offering of its aircraft and specialty finance unit, ILFC, according to people familiar with that matter.
AIG filed documents to take ILFC — International Lease Finance Corporation— public in September 2011, but only last month were convenants from the U.S. Treasury lifted.
The company is mulling a second-quarter IPO for ILFC that could value the speciality finance unit at $6 to $8 billion dollars, according to people familiar with the matter. AIG Chief Executive Bob Benmosche has repeatedly said the business is worth at least $8 billion.
One deal that is 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.
AIG decline to comment.
The U.S. government still owns 70 percent of AIG, even after March's monetization —though Fed Chairman Ben Bernanle commented recently that AIG's position has "stablized".
AIG shares have reflected that — they are still above the IPO price.