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AIG: Nan Shan Sale Consistent With International M&A Practices

TAIPEI -(Dow Jones)- American International Group Inc. (AIG) said Monday the process through which it sold its Taiwanese life insurance unit to a consortium led by Primus Financial Holdings Ltd. was consistent with best practices, following criticism from one of the unsuccessful bidders for the unit.

AIG agreed in mid-October to sell Nan Shan Life Insurance Co. to the consortium, which also included China Strategic Holdings Ltd. (0235.HK), for US$ 2.15 billion.

On Nov. 2, Chinatrust Financial Holding Co. (2891.TW) said it is studying with lawyers why its offer, which it said was the highest bid with the best terms, was unsuccessful.

But AIG said in a statement Monday the consortium led by Primus Financial submitted the highest offer "in both quantitative and qualitative terms of all competing bidders."

It added: "The process included thorough and extensive due diligence on all bidders and we ultimately selected the offer that presented the greatest long- term stability and potential."

-By Charmian Kok, Dow Jones Newswires; 88622 502-2557; charmian.kok@ dowjones.com

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  11-09-090557ET
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