AIG offered $3bn for Taiwan business

6 January 2011

American International Group (AIG) received a $3 billion offer for its Taiwanese Nan Shan Life Insurance unit, a letter to the Securities and Exchange Commission (SEC) has revealed.

According to the correspondence, which was sent by the group to the regulator in November 2010, AIG said: “Prospective buyers have approached AIG and have provided unsolicited letters of interest in purchasing Nan Shan at prices that range from $2.15 billion to $3.0 billion, which exceed AIG’s carrying value of Nan Shan at September 30th, 2010.

“AIG is preparing information to permit these parties to conduct due diligence on Nan Shan and believes these represent credible and valid non-binding indications of interest,“ the insurer said at the time.

The details of the letter were made public this week and show that AIG received an offer after an attempted bid to acquire the unit by a consortium of investors in August 2009.

Taiwanese regulators prevented the first bid from going ahead as it believed that the group lacked the financial capability and commitment needed for the investment.

AIG is looking to sell Nan Shan Life Insurance in order to repay the US government for funds received during the global credit crisis.

By Jim Ottewill

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