It looks like AIG (53.20) is going to pick up a few pieces of UK's Northern Rock, with Virgin's Richard Branson doing the heavy lifting with a few other investors. AIG has been smacked down from it's highs, and it should rally to 57ish quickly.
I think this will change psychology on the stock. How does a small deal change market perceptions? Did Northern Rock go to J.C. Flowers or Cerberus? That's the answer. Private equity is no longer first pick. Throw in an agitating Hank Greenberg, and Starr International's stake, and you have a stock poised to bounce.
And it can bounce hard.
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11/22 AIG fell 5.7 per cent to $51.33, after the company said it would discuss its exposure to the US residential mortgage market at an investor meeting next month, sparking fears of further debt writedowns.
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