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Carlyle Teams with Fubon for Bid on AIG Unit

Posted on 21 Jul 2009

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Private-equity firm Carlyle Group L.P. is teaming up with Fubon Financial Holding Co. to bid for American International Group Inc.'s Taiwan life-insurance unit, people with knowledge of the matter said Tuesday.

Separately, Bain Capital LLC, Oaktree Capital Management LLC and Morgan Stanley's private-equity unit are in talks with local firm Chinatrust Financial Holding Co. on bidding for the AIG unit, Nan Shan Life Insurance Co., the people said.

Two other shortlisted private-equity firms – Primus Financial Holdings Ltd. and MBK Partners Ltd. – are still looking for domestic partners to bid for Nan Shan Life, other people familiar with the situation said Tuesday, adding the companies are now contacting parties that haven't submitted initial bids for the AIG assets.

Last week, AIG shortlisted at least seven bidders to buy Nan Shan Life for about US$2 billion. Taiwan's financial regulator then stepped in and told the private-equity firms that they had to partner with two of the remaining three bidders, all Taiwanese, in order to continue bidding, people familiar with the situation told Dow Jones Newswires earlier.

The third Taiwanese company, Cathay Financial Holding Co., can bid independently, the people said.

Chinatrust Chief Investment Officer Daniel IK Wu, Fubon President Victor Kung and Cathay President Tsu-pei Chen have declined to comment on the deal.

AIG owns 95% of Nan Shan Life, Taiwan's second-largest life insurer by gross premiums after Cathay Life Insurance Co.