American International Group Inc. has urged staff at Taiwan unit Nan Shan Life Insurance Co. Ltd to voice their support for its planned $2.16 billion sale, saying their silence has allowed “ill-intentioned groups” to create negative impressions over the much-delayed deal.
In an internal letter to staff, a copy of which was obtained by Reuters on Tuesday, acting President Richard Bender reiterated that the planned sale to local consortium Ruen Chen Investment offered a bright future for Nan Shan, while no deal would effectively mean stagnation.
“AIG has made it clear that it will not inject capital again, limiting or even putting a stop to Nan Shan’s future new business,” Bender said in the letter. “I’m worried those ill-intentioned groups will get their way and hinder the deal, which would be a disaster for Nan Shan’s future.”
He did not identify the groups he referred to.
While there has been little open opposition to the sale, labour unions have renewed protests over a long-standing demand for equal pension rights for non-salaried sales agents, staging small-scale rallies and street demonstrations.
In addition, some politicians have complained that the buyer group received special treatment from regulators because of close personal ties between the chairmen of Ruentex and the Financial Supervisory Commission. The regulator issued a statement last month defending its handling of the deal.
The protests and complaints have dominated media coverage of the sale, while AIG has made few public comments.
In a sign that it is looking to change perceptions, Bender said Nan Shan would circulate a letter to all 3,000 salaried employees and its more than 30,000 sales agents seeking their signatures endorsing the sale and calling for a fast regulatory review. The letter would be sent to regulators, he said.
“This endorsement letter is meant for those who have remained silent, which accounts for a majority of the staff, so that they can express their feelings,” spokeswoman Amanda Chou said. “We hope regulators will OK the deal as soon as possible.”
AIG has been trying to sell Nan Shan for almost 18 months as it seeks to repay the U.S. government for its bailout. But it has faced a tough battle, with regulators acutely sensitive to the fate of Nan Shan’s 4 million policyholders, one-sixth of Taiwan’s population.
Its first attempt to sell was blocked last year with regulators judging the previous buyers insufficiently qualified to operate the business. The current prospective buyers are working to meet a series of demands to achieve regulatory approval
The regulator has said it will rule on the deal by the end of June.
Buyer group Ruen Chen is comprised of Ruentex Industries Ltd , property affiliate Ruentex Development Co Ltd and shoemaker Pou Chen Corp .
(Editing by Jonathan Standing; Editing by Chris Lewis)
Topics AIG
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