AIG (AIG -0.2%) plans to sell its shares in AIA Group (AAIGF.PK) after a lock-up period expires...

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Abigsoxfan Comments (237)
 
So good ole Bob is going to sell off AIA Group, become more concentrated in the volatile P&C business and this will decrease their volatility in earnings? OK, I get it now. I always believed diversification not concentration was the way to reduce volatility. I learned something important today.
16 May 2012, 12:20 PM Reply Like

ahouseoforange Comments (224)
 
they will still be diversified since they operate in over 100 countries around the world not just North America. Plus the money they bring in (plus or minus $7 billion) as a result of the AIA sale will mostly go towards the funding buying back tons more stock. Hopefully the stock will not go anywhere in the meantime (AIG stock) and at that rate they can fund a buyback of another 220 million or so shares which will drive up book value well into the 60 dollar range. All this is before the sale or IPO of ILFC which could easily bring in another 5 billion and AIG's share of Maiden Lane sales by the FED which apparently will bring another 7 billion at a minimum. So on top of the 220 million share buyback they can then fund another 10 or 11 billion dollar buyback retiring yet another 330 plus million shares. At that rate book value will be over $75 by the end of the year and the stock will double easily by early 2013 to trade in the 60s. When the latter happens the warrants will easily tripple and trade in the 30 dollar range.
16 May 2012, 01:04 PM Reply Like

CapVandal Comments (89)
 
I just finished a blog post concerning sales in ML III.

Latst estimate is for them to get $5.6 out of ML III starting in July 2012.

The final $2.2 billion will likely take longer.

There may be catalysts to doing share re purchases sooner rather than later.

Very motivated seller. The planets are aligned.
16 May 2012, 01:26 PM Reply Like

neisilva Comments (5)
 
I assume some investors do not have a mind of their own, obviously AIG has tons of potential; however lots of people think AIG needs to have hoards of folks buying it to be worth it. I keep buying, most likely will retire on this one. Motivated seller, when you are old and nod doing so well "Wall Mart likes old folks, their work for little money!
16 May 2012, 03:50 PM Reply Like