NEW YORK (TheStreet) -- American International Group (AIG) shares are up 1.47% to $59.55 in early market trading on Tuesday after the company announced that it was cutting its stake in aircraft leasing company AerCap (AER) by 51%.
The company plans to sell 50 million shares of the company, which would net AIG about $2.4 billion based on the AerCap's previous closing price of $48.24.
The insurer acquired its stake in the company following its sale of International Lease Finance Corp. to AerCap for $7.6 billion in cash and stock last year.
AerCap said that it would repurchase $750 million in stock from AIG, paying $250 million in cash while issuing $500 million of junior subordinated notes to AIG.
AerCap shares are up 0.9% to $48.68 in trading today.
TheStreet Ratings team rates AMERICAN INTERNATIONAL GROUP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN INTERNATIONAL GROUP (AIG) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."