AIG sale of Taiwan unit rejected
The $2.15 billion deal is derailed because of the buyer's suspected links to China.
By Joseph Woelfel, TheStreet
AIG's (AIG) sale of its Taiwanese life insurance unit to Primus Financial Holdings has been rejected by Taiwanese regulators.
The sale was held up on concerns that Primus may be backed by funds from China, The Associated Press reports. Reuters says Primus' partner in the deal, China Strategic, was suspected to have connections to China, Taiwan's political foe.
Taiwan law prohibits Chinese investment in the financial sector.
In October 2009, AIG announced the sale of the Taipei-based Nan Shan Life Insurance to an investor group led by Primus for about $2.15 billion. It's the second time AIG has tried to sell Nan Shan.
Taiwan's vice economics minister, Huang Chung-chiu, said Primus can file an appeal to authorities in 30 days, but he didn't elaborate on the rejection of its application, AP reports.
Primus has previously denied having a Chinese sponsor, AP says.
Proceeds from the sale of Nan Shan were to be used by AIG to pay back the U.S. government, which bailed out the insurer in 2008.
AIG wasn't available for comment.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the Wednesday session on a mixed note with small caps displaying relative strength. The Nasdaq Composite (+0.5%) and Russell 2000 (+0.4%) registered modest gains, while the Dow Jones Industrial Average (-0.2%) and S&P 500 (+0.01%) underperformed.
Despite the mixed finish, the key indices traded higher across the board at the start of the session after the advance reading of second quarter GDP surpassed estimates (4.0% versus Briefing.com ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'