AIG to Hold Off Naming Buyer for Nan Shan
TAIPEI, Taiwan (
) --
AIG
(AIG) - Get Report
won't name the buyer for its
Nan Shan Life
unit in Taiwan on Friday, but will do so at the end of September as bids have come in below the $2 billion the insurer has sought, a report says.
AIG was expected to announce the buyer Friday but the buyer groups were notified the results of the bidding will be announced in a month,
Reuters
reports, citing a report in Chinese-language newspaper
Commercial Times
.
Last week,
Bloomberg
reported AIG may not get the $2 billion it was looking for in the sale of the Taiwanese life insurance unit, a report says.
Reuters
reports Friday that a joint bid from investment firm
Primus Financial
and Hong Kong battery maker
China Strategic
was one of the highest bidders at between $1.2 billion and $1.3 billion, according to sources.
The other two bidders were Taiwan's
Cathay Financial
and a consortium of
Carlyle Group
and Taiwanese partner
Fubon Financial
,
Reuters
reports.
Chinatrust Financial
also has submitted a bid.
The low bids could derail a deal altogether based on recent comments from AIG CEO Robert Benmosche who said he would wait for a fair price before unloading assets. AIG is looking to sell Nan Shan Life, Taiwan's second-largest life insurer, as part of its 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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