AIG mulling options for Taiwan unit after aborted deal

    0 2

    US insurance giant American International Group said Tuesday it was considering other options after collapse of the sale of its Taiwan unit to a Hong Kong consortium. The Hong Kong-listed China Strategic Holdings on Monday formally called off its high-profile acquisition of Nan Shan Life Insurance Co from AIG for 2.15 billion US dollars.

    “AIG is evaluating its options with respect to its ownership of Nan Shan,”

    AIG said in a statement, without providing details. China Strategic’s decision came after Taiwan’s Investment Commission last month rejected an application by China Strategic Holdings and its partner Primus Financial Holdings for the acquisition of Nan Shan.

    The duo was invited to appeal, but they have not done so. Taiwan authorities said they feared the consortium lacked the experience needed to manage an insurer and argued it had failed to provide a long-term management commitment, claims flatly rejected by the Hong Kong 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.

    AIG and its Hong Kong buyers struck the deal in October last year, but it has been in limbo as Taiwan authorities have screened it. Rumours surfaced late last year that mainland Chinese capital was involved in the deal. The consortium has repeatedly denied the rumours.

    Taipei, Sept 21, 2010 (AFP)