AIG Shares Tank on Report of Restructuring

AIG(AIG Quote) plans to unveil a major restructuring plan by early Monday morning that will likely include the sale of its aircraft-leasing unit and other assets, The Wall Street Journal reported on its Web site Sunday.

Managers at the nation's No. 1 insurer were trying to put together the plan Sunday afternoon and present it to the company's board for approval, the Journal reported, citing people familiar with the situation.

AIG, which has already raised $20 billion in fresh capital in 2008, was also talking to several private equity firms about getting more capital and was hoping to raise more than $10 billion, the Journal added.

In addition to its aircraft-leasing arm, AIG was considering selling off assets related to property and casualty insurance, the Journal reported.

The reported moves come after a dizzying 31% drop in AIG's stock price Friday driven by investor worries that the company lacked sufficient capital.

Late Friday, Standard & Poor's warned that it could slash AIG's credit rating on concerns that the insurer will have trouble getting fresh capital quickly, the Journal noted.

AIG shares, which finished Friday's session at $12.14, were down $6.10, or 50%, to $6.10.