Price, union trouble threaten AIG's Taiwan sale

Source: Reuters

TAIPEI/HONG KONG (Reuters) - A rich asking price could once again sink AIG's (AIG.N) plan to sell its Taiwan insurance unit after an attempt at a sale earlier this year met a similar fate.

American International Group, once the world's biggest insurer before the U.S. government had to bail it out last year, is seeking about $2 billion for Nan Shan Life, likely its most expensive asset for sale in Asia.

But some potential buyers say the Taiwan unit's net assets could be worth as much as 40 percent below the T$100 billion ($3 billion) that AIG claims, sources told Reuters.

As the August 28 sale deadline nears, bidders are re-evaluating the situation and some could walk away due to disagreements over the price and lack of information provided by the seller, said financial industry sources in Taiwan and Hong Kong.

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