AerCap Holdings N.V. (NYSE:AER) Buys Out Aircraft Leasing From American International
AerCap Holdings N.V. (NYSE:AER) which is a $3.77 billion market capped aircraft leasing and rental services player has managed to strike a deal with struggling insurance provider American International Group Inc (NYSE:AIG) which will in turn expand its foot print in the aircraft leasing industry many fold. As per the announcement which hit the news rooms yesterday, the small cap firm has signed off on a $5.4 billion deal with American International Group Inc. In return all the aircrafts and the entire leasing operations of American International will move under the ownership of AerCap Holdings N.V. (NYSE:AER).
When this news reached the markets, the investors jumped into the stock of this aircraft rental services provider with both their feet. During just one day of trading yesterday, the stock price of AerCap Holdings N.V. (NYSE:AER) jumped up by a huge 33 percent. This surge ahead yesterday was on the top of a similar double digit increase in market value during trading earlier last week. Over the past five days of trading the stock has posted a significant 55.8 percent increase in market value thus driving the current stock price 33 percent above its prior 52 week high price points. So high was the investor interest in the stock yesterday that the average daily trading volume almost doubled to reach a record daily transaction high of 10.9 million transactions.
Readers should note that American International Group Inc (NYSE:AIG) which boasts of a market cap of $74 billion has been attempting to cut itself off some of its noncore businesses in order to focus on its bread and butter Insurance sector. The insurance firm had been forced to seek bailout funds from the U.S Government to stave off a definitive bankruptcy in 2008 when some of its derivative bets turned out to be non starters.