Should now accrue slightly more than 50% of May revenues for the ILFC leases. Onward and upward!!
I would expect that this successful closing should reduce risk and lead to some more stock appreciation.
All news is good news!!
My only question is: Why didn't AER insist upon a stock price collar to prevent the transaction price from climbing all the way to $7 billion and reducing potential value for existing shareholders?
Hokie, to your question, my speculation is that the potential upside to AIG was a key term of the deal. In other words, AIG expected some appreciation from the AER stock, and didn't want to cap its upside potential.
mast... You could be right. But, why not then put the top of the collar at say $28, $32 or $35. We should not have had to give away $45.