American International Group Inc. (AIG) is likely to pursue an IPO for its plane-leasing subsidiary. This was after the sale of the unit became stalled, said analysts who follow AIG.

BMO analyst, Charles Sebaski, said that the AIG has looked for a fallback plan after the mired deal. Sebaski added that there might not be other acquirers interested for the asset once set for initial public offering.  

Today, a Chinese buyer group set deadline to complete the acquisition of 80% of AIG's International Lease Finance Corp (ILFC). The deal was priced at USD4.2 billion but AIG has not received the funds, said a person with direct information about the deal. According to the same source who asked not to be identified as matters were held private, the deadline for the deal might be extended as talks were still on-going.

Last year, AIG Chief Executive Officer, Robert Benmosch has been seeking to selloff ILFC to decrease debt and simplify the company. The net proceeds from an acquisition deal would help AIG buy back shares or reinstate a dividend.