M&A

19 November, 2009

Taiwan concerned about AIG Nan Shan deal -official

TAIPEI, Nov 19 (Reuters) - The Taiwan government is raising concerns that the buyers of AIG's (AIG.N) Nan Shan Life insurance group, China Strategic (0235.HK) and its partner Primus Financial, are backed by China-sourced funds, complicating the approval process behind the $2.15 billion deal, an official said Thursday.

Officials are also worried that the consortium will not live up to its promise of owning the company for seven years.

"We will not make a decision in the short term," Financial Supervisory Commission chief secretary Lu Ting-chieh told Reuters by phone. "There are many questions that need to be answered."

(Reporting by Faith Hung and Rachel Lee; Writing by Michael Flaherty; Editing by Jonathan Hopfner)

Source: http://www.reuters.com