"As of August 20, 2012, up to approximately $104 million in additional shares may be purchased under this program."
So AerCap still has about $104 million allocated for stock repurchasing. The company can use the fund in open market.
It is a good sign that the institutional investors are not selling.
But 25,000 shares is less than 15% of his total holding.
Apparently he has sold that amount because he needs some cash now. But he is waiting for better price for the rest of his shares...
According to Thomson Reuters, the 10m share transaction between Cerberus and AerCap is in additional to the the previously announced $200m repurchase program:
"This purchase is in addition to the previously announced repurchase program pursuant to which AerCap may purchase up to $200 million of its ordinary shares prior to June 30, 2013. As of August 20, 2012, up to approximately $104 million in additional shares may be purchased under this program."
I assume that AerCap bought the 2.2 million shares from an institution holder. Is $11.87 a good price for AerCap?
2.2m shares would normally crash the market. AerCap could have bought the shares at lower price.
Any indication of Cerberus selling at this price? The extreme low volume indicates that most share holders are waiting for higher price.
Yahoo's number is apparently wrong.
Merrill Edge says the P/E is 6.52.
It makes sense for GE to expand aircraft leasing business while the cost of acquisition is still low. I am sure that the larger the leasing operation, the deeper discount it can get from Boeing and Airbus, the lower interest rate from the banks, and you can still only need to pay the management and employee once.
GE would probably first talk to the institution investors who hold the lion's share of the stock, before making a public offer.
Where are all the traders?
Only thing that I can think of, is that there is big divergence between the prospective buyers and the shareholders regarding the price.
Look like Shah and the rest are staying put. No reason to sell the stock so cheap unless they have to.
Much of the distrust from American investors has to do with unfamiliarity with the Chinese environment. It is much easier for a Chinese lender to understand a Chinese borrower's business and get acquainted with the management.
It is a lender's market. A lender can demand collaterals to reduce the risks.
The contract with AMR is a buy/lease-back one. So AMR has already sold the planes to AER on paper, and it should not be allowed to re-negotiate the planes it has sold.
Of course AMR can still re-negotiate on the leases of those fuel efficient new jets, I assume.
Kingfisher chose not to renew the leases because it is downsizing.
What kind of planes are those two?
Can't image it will take long to turn around. All maintenance is up-to-date, I assume.
Boeing Says Orders to Top Output Through 2013 as 737 Gains