Bidders might look for deals on CIT's rail, aircraft units

07/27/2009 | Bloomberg

Jeffrey Peek, CEO of CIT Group, is considering selling the company's aircraft- and railroad-leasing divisions, sources said. However, American International Group and General Electric both failed to find buyers for similar subsidiaries. Given market conditions and CIT's announcement that it might seek bankruptcy protection, it is unlikely that offers would reach the units' book values, analysts said. "Buyers might feel CIT is a distressed seller, and as a result of that, they may not want to pay a fair price," said Sameer Gokhale, an analyst at KBW.

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