A Hong Kong consortium's bid for American International Group's Taiwan unit has been rejected because it lacked the experience needed to run an insurance business, reports the South China Morning Post.
The Hong Kong consortium of China Strategic Holdings and Primus Financial Holdings made a US$2.15 billion bid for Nan Shan Life Insurance Company Ltd. But Taiwan's regulators rejected the proposal, questioning the consortium's stability and financial ability.
The Post says AIG wants to sell Nan Shan so it can repay the United States government for an US$85 billion bailout during the financial crisis. The insurance company is not happy about the Investment Commission's decision, saying it would reconsider the sale.
Earlier this week, Reuters reported that a 71-year old Taiwanese revealed he would buy Nan Shan if an existing bid from a Chinese company is turned down by Taiwan's Financial Supervisory Commission.
Wang Shih-jung, a former diplomat, has lined up a US$2.5 billion bid for Nan Shan, using money from Japanase investors, a Qatari fund, and Taiwanese banks.