AIG aims to sell Taiwan insurance unit in Q1

By Faith Hung

TAIPEI (Reuters) - American International Group Inc is aiming to sell its 95 percent stake in Taiwan life insurer Nan Shan Life, a source said on Monday, in a deal that local media estimated would be worth $2-2.5 billion.

The troubled insurer planned to unload the unit as soon as the first quarter of next year, said the source, who is familiar with the deal and spoke on condition of anonymity.

"One of AIG's priorities is to raise cash to pay back its debts, and the company wants to do that as soon as possible," the source told Reuters by telephone.

"The global financial environment has been tough though, making it hard for them to sell Nan Shan at a satisfactory price," said the source.

AIG had decided to sell its entire stake in Nan Shan for $2-$2.5 billion as it tries to lure potential buyers such as Cathay Financial and Fubon Financial, the Economic Daily newspaper said, citing unnamed market sources.

Previously, AIG had only wanted to sell a 49 percent stake, local media said.

Nan Shan officials could not be reached for comment.

Cathay Financial, Shin Kong Financial and Fubon Financial -- AIG's major competitors in Taiwan -- were approached by investment banks including Citigroup, officials from the companies said.