China Strategic's bid for AIG's Taiwan unit rejected
Updated: 2010-09-01 07:34
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Trading in shares of China Strategic Holdings Ltd was suspended Tuesday after Taiwan regulators rejected AIG's planned $2.2 billion sale of its Taiwan unit Nan Shan Life to the Hong Kong-listed battery-maker and an investment fund, Primus.
Taiwan's Investment Commission, which overseas inbound investments and has final say on the deal, made the ruling after a meeting on Tuesday. It said the bid did not comply with Taiwan rules on investment from the mainland.
American International Group (AIG), needing to sell assets to pay back the US government for a bailout, first agreed to sell the Nan Shan unit last October, but suspicions in Taiwan about the connections of buyer China Strategic with the mainland and concern it could not run an insurance business held up the deal.
Taipei said Tuesday that the deal did not comply with Taiwan's rules on investment from the mainland, and also noted the lack of experience in insurance on the part of battery-maker China Strategic and its bid partner, Hong Kong investment firm Primus. It added that China Strategic is able to appeal the decision within 30 days.
AIG and China Strategic were not immediately available for comment following the decision.
Reuters
(HK Edition 09/01/2010 page3)