AIG Unit Sale Rejected
August 31, 2010 4:35 AM
American Internatioanl Group's (NYSE: AIG) $2.2 billion sale of its Taiwan unit to a firm with ties to mainland China has been rejected by Taiwanese regulators.
AIG first agreed to sell the Nan Shan unit last October, but suspicions in Taiwan about the connections of buyer China Strategic with China and concern it could not run an insurance business held up the deal, according to Reuters.
The asset sale is part of AIG's planned divestures to raise cash to repay the U.S. government for loans that essentially saved the company during the financial crisis.
Taiwanese bank Chinatrust Financial could emerge as a bidder for the AIG business. A Taiwanese diplomat said he is organizing bids backed by unnamed Japanese and Qatari investors, Reuters reported.
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