AIG sale of Taiwan unit rejected

The $2.15 billion deal is derailed because of the buyer's suspected links to China.

By TheStreet Staff Aug 31, 2010 9:39AM

business news from thestreetBy 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.

 

Related Articles

0Comments

DATA PROVIDERS

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.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The major averages ended the midweek session on a flat note after spending the day inside narrow ranges. The S&P 500 hovered near the 2,000 mark for the majority of the trading day, but slumped to new lows during the last hour of action. The index then returned to its flat line, where it settled for the day. For the third day in a row, participation left a lot to be desired with just 487 million shares changing hands at the NYSE.

Equity indices opened with slim gains, ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY