AIG to Hold Off Naming Buyer for Nan Shan

The insurer was expected to name a buyer for its Nan Shan unit Friday but will wait until the end of the month because bids have come in below what AIG desires.
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TAIPEI, Taiwan (

TheStreet

) --

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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