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I don't think it will make a giant impact on Fairholme - probably a moderate issue for the fund for a matter of a few days. AIG is trying to sell stakes in some other things as well - they sold a stake in Blackstone (also at a discount, although the shares went through the discounted selling price) the other day, too.
It still wouldn't be high on my list (there's just other industries I'd be more interested in), but I think this would actually be an opportunity to take a closer look at AIA on a specific stock basis. The foreign ordinary shares are $3 and change. Pays a dividend (although a pretty minimal one.) I am a little curious as to timing of AIG's sales - whether they were required to raise cash at a specific time or simply believe that this is a very good time to start taking profits on various holdings.
So, if a large share holder starts selling, it will effect the price of AIA and as a result Fairholme over the short term. Over a longer period of time, and Berkowitz is sure to hold AIA for a while, it won't matter at all.
The selling is a divestiture, not related to some issue with AIA, so it probably won't be a big deal.
Reply to @NickF: Agreed. Mainly a concern over the next few days.
Additionally, just to avoid confusion for those reading this, AIA is an Asian ETF and the link has automatically popped up when AIA is mentioned in this thread - the AIA discussed is an Asian insurance company, not the etf linked.
I was sure that I recalled in the early phases of setting up the ticker symbol read; that certain aspects of how a ticker was placed among other character sets could remove the highlight. This does.................... aia ........ as a ticker must be caps to highlight.
Reply to @Maurice: It will impact the fund. I don't think it will effect it massively, or for a terribly long period. That said, I find the timing of AIG's sale of AIA and Blackstone - both at discounts to current prices - interesting. Required time to start selling assets, or their belief that now is the right time to sell?
Additionally, as for AIA's ADR, it's thinly traded - the last price is $14.40, down 4.26%, but the current ask is $14.25.
Comments
It still wouldn't be high on my list (there's just other industries I'd be more interested in), but I think this would actually be an opportunity to take a closer look at AIA on a specific stock basis. The foreign ordinary shares are $3 and change. Pays a dividend (although a pretty minimal one.) I am a little curious as to timing of AIG's sales - whether they were required to raise cash at a specific time or simply believe that this is a very good time to start taking profits on various holdings.
The selling is a divestiture, not related to some issue with AIA, so it probably won't be a big deal.
Additionally, just to avoid confusion for those reading this, AIA is an Asian ETF and the link has automatically popped up when AIA is mentioned in this thread - the AIA discussed is an Asian insurance company, not the etf linked.
If you choose to place some type of symbol around what could be picked up as a ticker symbol, the "system" should ignore...... "AIA".
NOPE...........that didn't work, eh?
Take care,
Catch
I was sure that I recalled in the early phases of setting up the ticker symbol read; that certain aspects of how a ticker was placed among other character sets could remove the highlight.
This does.................... aia ........ as a ticker must be caps to highlight.
Catch
Additionally, as for AIA's ADR, it's thinly traded - the last price is $14.40, down 4.26%, but the current ask is $14.25.