AIG Seen Pursuing ILFC IPO as China Deal Stalls

American International Group Inc. is increasingly likely to pursue an initial public offering for its plane-leasing business after a deal to sell the unit stalled, according to analysts who follow the insurer.

“The fallback is a public offering,” said Charles Sebaski, an analyst at BMO Capital Markets. “I don’t think there’s a likely other acquirer out there for this asset.”