AIG shortlists two bidders for Taiwan unit: report

December 09, 2010 | 17:00

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US insurance giant AIG has shortlisted two firms among five original bidders for its Taiwan unit, Nan Shan Life, a report said Thursday.

American International Group has set its sights on Goldsun Group and an investment firm jointly formed by Ruentex Group and Pou Chen Corporation, said the Economic Daily News, citing unnamed sources.

The two groups, along with Chinatrust Financial, Fubon Financial, and Cathay Financial had reportedly submitted bids for Nan Shan Life with offers of between two and three billion US dollars.

Ruentex-Pou Chen is the highest bidder while Goldsun is favoured as it is allegedly backed by Hong Kong-based Primus Financial Holdings, whose previous attempt to acquire Nan Shan failed, the report said.

AIG's legal executive Andrew Borodach has arrived in Hong Kong where he will meet with Asian bidders by the end of this week, it said.

Company officials were not immediately available for comment.

The bids were submitted when AIG said it was considering other options after the collapse of a planned $2.15 billion sale of Nan Shan Life to China Strategic Holdings.

The Hong Kong-listed company and its partner Primus Financial Holdings called off the deal in September after it was rejected by Taiwan's Investment Commission.

Taiwanese authorities said they feared the Hong Kong consortium lacked the experience needed to manage an insurer and argued it had failed to provide a long-term management commitment -- claims dismissed by the consortium.

The rejection of the bid came as a blow to AIG, once the world's largest insurer, which has been selling assets to pay back US government loans since its rescue from collapse during the 2008 financial crisis.

AFP

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