AIG May Not Get $2B for Taiwan Unit: Report

The U.S. insurer may not get the $2 billion it was looking for in the sale of its Taiwanese life insurance unit, a report says.
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NEW YORK (

TheStreet

)--

American International Group

(AIG) - Get Report

may not get the $2 billion it was looking for in the sale of its Taiwanese life insurance unit, a report says.

Bidders for the Nan Shan Life Insurance unit may offer less than AIG's target,

Bloomberg

reports, citing three people with knowledge of the matter.

A group led by

Primus Financial

may bid between $1.2 billion and $1.4 billion for AIG's subsidiary, said one of the people,

Bloomberg

reports.

Fubon Financial

plans a $1 billion offer, while

Cathay Financial

may bid at least $1.5 billion, the news agency adds.

Binding offers for the unit are due Friday.

Last week it was reported by

Reuters

that

Chinatrust

, Taiwan's top credit card insurer, was the

latest bidder

to likely pull out of the rapidly thinning field for Nan Shan Life. Chinatrust's partner in the pending deal, Bain Capital, expressed concerns with going forward,

Reuters

reported.

The sale of Nan Shan Life, Taiwan's second-largest life insurer, is part of AIG's plan to shed assets and help it repay bailout loans it received from the U.S. government.

-- Reported by Joseph Woelfel in New York

.

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