AIG confirms discussions to sell bulk of jet leasing business to Chinese group

Timothy A. Clary/AFP/Getty Images

NEW YORK AIG (AIG) says it is in talks with a Chinese investor group to sell a controlling stake in its jet leasing business.

American International Group said Friday that the talks to sell a 90 percent stake in its International Lease Finance business are with a group led by New China Trust, New China Life Insurance, P3 Investments and China Aviation Industrial Fund.

AIG has said its jet leasing business is a non-core asset. It filed plans last year to take it public.

AIG provided no other details on a potential sale.

The U.S. government stepped in with $182 billion to rescue New York-based AIG from collapse in September 2008. The Treasury Department said in September that the government had recovered a total $197.4 billion from the company. That's all of the original investment, plus a return of $15.1 billion.

Treasury says that in recent months, sales of AIG shares have cut the government's stake in the insurance giant to less than 16 percent. The government has made a profit on the shares it has sold.

Shares of AIG on Friday rose nearly 2 percent.

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