Why Shares of AerCap Holdings N.V. Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of aircraft leasing company AerCap Holdings N.V. jumped over 30% today after the company announced an acquisition.
So what: AerCap is buying AIG's aircraft leasing arm, called International Lease Finance Corp., for $3 billion in cash and 97.56 million shares of new AerCap stock. At today's stock price, the deal is worth about $6.2 billion and will make AIG the largest shareholder with 46% of AerCap's stock.
Now what: This deal was rumored last week and became a reality today with the help of cash financing lined up by AerCap this year. It makes the company the largest aircraft leasing company in the world with a huge backlog of Boeing and Airbus orders. AerCap CEO Aengus Kelly said that was "the jewel in the crown" of the deal.
Bet on long-term stocks, not speculation
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal "The Motley Fool's 3 Stocks to Own Forever." These picks are free today! Just click here now to uncover the three companies we love.
The article Why Shares of AerCap Holdings N.V. Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: long January 2016 $30 calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.