China Strategic Holdings Ltd. will decide whether to appeal a decision by Taiwan’s regulators to block its planned purchase of American International Group Inc’s Taiwan unit.
In a statement on Wednesday, China Strategic said it was disappointed by the decision, “having cooperated to the furthest extent with the Taiwan regulatory authorities on the requisite conditions imposed.”
Taiwan’s regulator said on Tuesday that China Strategic and its bid partner, Hong Kong Investment firm Primus Financial Holdings, did not meet criteria covering experience in running an insurance company and the ability to raise funds.
AIG, which needs to sell assets to pay back the U.S. government for a bailout, first agreed to sell Nan Shan last October, but suspicions in Taiwan about the connections of China Strategic with political foe China, and concern it did not have the experience to run an insurance business, had held up the deal.
The decision left AIG facing the prospect of finding a new buyer. It was the second deal involving its Asian businesses to collapse in four months after a planned sale of its AIA unit to Britain’s Prudential fell through.
AIG said in a separate statement late on Tuesday that it would also consider its next move.
It could be considering a possible offer from Taiwan’s Fubon Financial [ See IJ web site – https://www.insurancejournal.com/news/international/2010/09/01/112907.htm].
Shares in China Strategic will remain suspended on the Hong Kong stock exchange until the company receives official notification of the rejection of the bid and decides whether to appeal.
(Reporting by Denny Thomas; Editing by Ken Wills)
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