Chinatrust Talks To New Potential Partners On AIG Unit-Source
August 19 2009 - 5:32AM
Dow Jones News
Chinatrust Financial Holding Co. (2891.TW) is in talks with
potential new partners to bid for the Taiwan unit of American
International Group Inc. (AIG) after the collapse of its bidding
consortium with three private equity firms, a person familiar with
the matter told Dow Jones Newswires Wednesday.
Bain Capital LLC, Oaktree Capital Management LLC and Morgan
Stanley's private-equity unit have decided not to join Chinatrust's
bid for Nan Shan Life Insurance Co., 95%-owned by AIG, because they
couldn't agree with Chinatrust on some terms of cooperation, the
person said on condition of anonymity.
"Right now Chinatrust is still in talks with new potential
partners, who are foreign private-equity funds," the person
said.
On Tuesday, Chinatrust Chief Investment Officer Daniel IK Wu
said the company is capable of acquiring and integrating Nan Shan.
American International Group Inc.'s (AIG) Taiwan unit.
Wu couldn't immediately be reached for comment.
Chinatrust, Taiwan's largest credit-card issuer, is competing
with Cathay Financial Holding Co. and Fubon Financial Holding Co.
to acquire Nan Shan in a deal that will likely total US$2
billion.
Interested investors are required to put in bids Aug. 28, people
familiar with the deal said.
-By Perris Lee Choon Siong, Dow Jones Newswires;
+8862-2502-2557; perris.lee@dowjones.com