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AIG - American International Group


PlanMaestro

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Indeed you are correct... My bad.

 

I posted this news article from CNBC, but I have seen it also on Reuters and Forbes. It just shows to double check your sources no matter how many repeat the same story even if written differently.

 

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Now, let's go with a rumour!  ;)

 

I would expect some news very soon. I don't have a Bloomberg terminal, but I see the stock moving up strongly now in the pre-market with decent volume.

 

Did we receive the deposit on the ILFC sale?

 

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ILFC could cause some short term volatility -- but in reality if it doesn't close -- it simply means it will take time and resources to complete another deal.

 

Meh... I'm not so concerned about the short term volatility of AIG based on these short term headlines. I'm more worried about macro insanity that could occur.

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IMHO, The ILFC deal is not material to AIGs prospects going forward.  It was relevant last fall, but not now.  If they keep it on the balance sheet they will earn some money on it. 

 

I think they should forget about the China deal, and float an IPO.  Sell it to the public over a couple of years.  Getting it off the balance sheet is more important than the cash the sale will make.  Getting ILFCs debt moved off will allow AIG to improve its credit ratings.  Right now the debt is being counted by the rating agencies as part of AIG.

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IMHO, The ILFC deal is not material to AIGs prospects going forward.  It was relevant last fall, but not now.  If they keep it on the balance sheet they will earn some money on it. 

 

I think they should forget about the China deal, and float an IPO.  Sell it to the public over a couple of years.  Getting it off the balance sheet is more important than the cash the sale will make.  Getting ILFCs debt moved off will allow AIG to improve its credit ratings.  Right now the debt is being counted by the rating agencies as part of AIG.

 

I still think it cannot be sold...maybe an IPO can work. I will be happy to be proven wrong though.

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  • 2 weeks later...

Something driving me a tiny bit nuts about this AIG lawsuit against BAC. 

 

It would be interesting to cross compare the shareholders of AIG and BAC for overlap.  I am betting that a bare minimum of 50% of the shareholders of BAC are also Shareholders of AIG, with known cross holders, and index funds. 

 

If the lawsuit was put to a vote I would think it would be cancelled.  This would save both sides a mountain of fees, and remove uncertainty from both sides, especially BAC.

 

Just a thought.

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Something driving me a tiny bit nuts about this AIG lawsuit against BAC. 

 

It would be interesting to cross compare the shareholders of AIG and BAC for overlap.  I am betting that a bare minimum of 50% of the shareholders of BAC are also Shareholders of AIG, with known cross holders, and index funds. 

 

If the lawsuit was put to a vote I would think it would be cancelled.  This would save both sides a mountain of fees, and remove uncertainty from both sides, especially BAC.

 

Just a thought.

 

I'm with you on this. Let's do it.

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Something driving me a tiny bit nuts about this AIG lawsuit against BAC. 

 

It would be interesting to cross compare the shareholders of AIG and BAC for overlap.  I am betting that a bare minimum of 50% of the shareholders of BAC are also Shareholders of AIG, with known cross holders, and index funds. 

 

If the lawsuit was put to a vote I would think it would be cancelled.  This would save both sides a mountain of fees, and remove uncertainty from both sides, especially BAC.

 

Just a thought.

 

LOL . AIG needs to do what's best for AIG -- even if there is shareholder overlap. I'm sure you know this.

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Something driving me a tiny bit nuts about this AIG lawsuit against BAC. 

 

It would be interesting to cross compare the shareholders of AIG and BAC for overlap.  I am betting that a bare minimum of 50% of the shareholders of BAC are also Shareholders of AIG, with known cross holders, and index funds. 

 

If the lawsuit was put to a vote I would think it would be cancelled.  This would save both sides a mountain of fees, and remove uncertainty from both sides, especially BAC.

 

Just a thought.

 

LOL . AIG needs to do what's best for AIG -- even if there is shareholder overlap. I'm sure you know this.

 

Correct. Not what's best for the lawyers.

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Something driving me a tiny bit nuts about this AIG lawsuit against BAC. 

 

It would be interesting to cross compare the shareholders of AIG and BAC for overlap.  I am betting that a bare minimum of 50% of the shareholders of BAC are also Shareholders of AIG, with known cross holders, and index funds. 

 

If the lawsuit was put to a vote I would think it would be cancelled.  This would save both sides a mountain of fees, and remove uncertainty from both sides, especially BAC.

 

Just a thought.

 

LOL . AIG needs to do what's best for AIG -- even if there is shareholder overlap. I'm sure you know this.

 

Correct. Not what's best for the lawyers.

 

Exactly, Right now AIG is doing what is best for lawyers.  Cases like these, with dubious outcomes at best cost a fortune for both sides.  And all shareholders suffer. 

 

Anyway, the case will be long gone before anything changes. 

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http://www.bloomberg.com/news/2013-06-18/aig-falls-as-bernstein-cites-risk-to-ilfc-deal.html

 

...

 

The insurer said yesterday it is open to new offers for its International Lease Finance Corp. and may pursue an initial share sale of the business after extending for a second time a deadline for a group of Chinese investors to buy the unit. The group, led by New China Trust Co. Chairman Weng Xianding, agreed in December to pay $4.2 billion for an 80 percent stake in ILFC.

 

....

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Buy-rated AIG's price target is hiked to $56 from $52 by Deutsche's Joshua Shanker after meetings with Peter Hancock, the CEO of the insurer's P&C business. Shanker is confident AIG is on track to achieve a 90-95% combined ratio by 2015. A dividend - "modest," but more than "nominal" - and continued share repurchases are looking more certain for 2013. Shares +0.5% premarket.

 

http://seekingalpha.com/currents/post/1092842

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Buy-rated AIG's price target is hiked to $56 from $52 by Deutsche's Joshua Shanker after meetings with Peter Hancock, the CEO of the insurer's P&C business. Shanker is confident AIG is on track to achieve a 90-95% combined ratio by 2015. A dividend - "modest," but more than "nominal" - and continued share repurchases are looking more certain for 2013. Shares +0.5% premarket.

 

http://seekingalpha.com/currents/post/1092842

 

any one have that report around?  I'd be interested to read it.

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Don't forget, this will also be combined with a share repurchase program.  We still have 6 more years left in the warrants so plenty of time for dividend adjustments!  :)

 

Tks,

S

 

Here you go racemize

 

Thanks!

 

Looks like they peg the dividend right at the warrant threshold - I guess it will be good for price appreciation, but that's the highest level without any adjustments!  somewhat painful...

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Don't forget, this will also be combined with a share repurchase program.  We still have 6 more years left in the warrants so plenty of time for dividend adjustments!  :)

 

Tks,

S

 

Here you go racemize

 

Thanks!

 

Looks like they peg the dividend right at the warrant threshold - I guess it will be good for price appreciation, but that's the highest level without any adjustments!  somewhat painful...

 

Warrants expire in 2021, so we have close to 8 years left. That's A LOT of time.

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