NEW YORK (TheStreet) -- American International Group (AIG) shares are down 0.66% to $60.70 in morning trading on Thursday after the insurer sold $3.7 billion worth of AerCap (AER) stock in a public offering that was much larger than it previously forecast.
AIG sold 71.2 million shares of the aircraft leasing company in a public offering Wednesday, significantly more that the 50 million shares the company originally said it would sell.
Following the completion of the sale, AIG's stake in the company fell to 5% from 46%.
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 repurchased an additional 15.7 million of its shares from AIG.
AerCap shares are down 3.1% to $48.78 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."