AIG Taiwan unit won't go back on market if deal rejected
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TAIPEI, Taiwan (Reuters)—American International Group Inc. will stop funding new business growth at its Taiwan unit if its second attempt to sell the company is unsuccessful, and sees no point in trying to put it on the market again.
After 18 months of a sale process that has seen one deal rejected and the latest $2.16 billion one progressing slowly under stiff conditions imposed by the regulator, AIG is keen to push on with the sale and is "hopeful" of a speedy decision.
"It would be very difficult to put it back to the market again," Richard Bender, acting chief executive of the Nan Shan unit, told Reuters in his first media interview since taking on the role in October, when AIG began its second attempt to sell the business.
"You've gone through a fair process twice, and it leads you to wonder if you can't do it in one of these two ways, what's the point of trying yet a third time?"
No more management expertise or capital would be available for Nan Shan if the unit is not sold, and it would not be able grow new business, he said.
"Plan B, if you will, would be that we would have to look at severely curtailing or shutting down new business," Mr. Bender said.
Struggles with a regulator acutely sensitive to the fate of Nan Shan's 4 million policyholders, or a sixth of Taiwan's population, have dogged the insurer's attempts to sell Nan Shan as part of its plans to pay back the U.S. government for its bailout.
The buyer group, Ruen Chen Investment, is comprised of conglomerate Ruentex , property affiliate Ruentex Development and shoemaker Pou Chen.
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