updated 09:40 pm EDT, Mon September 15, 2008
Apple suggested for Dow
A decade ago, Apple was the subject of deathwatches and buyout rumors. Now, a CNN Money editor at large is suggesting that Apple could replace AIG in the Dow Jones industrial average. The New York Times is reporting that AIG (American International Group), a large insurance company, is seeking a $40 billion bridge loan from the Federal Reserve, in the face of a potential downgrade from credit ratings agencies that could spell its doom. CNN Money is reporting that AIG will have to sell its aircraft-leasing arm, International Lease Finance Corp, and possibly its annuities business and auto insurance unit to raise cash.
With AIG's extraordinary troubles, CNN Money's Paul La Monica suggests that Apple should be considered as a replacement for the floundering insurance company on the Dow, with Wells Fargo and Cisco Systems also mentioned as contenders. La Monica said, "Apple dominates the consumer electronics market with its iPod and iPhone and is expected to generate $40.4 billion in sales in its next fiscal year - higher than the estimated revenue for Dow components Coca-Cola, Walt Disney and Alcoa."