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Wednesday, January 12, 2011

AIG agrees $2.2 bln sale of Taiwan unit after year-long delay

American International Group Inc accepted a $2.16 billion cash offer for its Taiwan Nan Shan Life unit from a group led by local conglomerate Ruentex, marking the beginning of the end of a drawn-out process fraught with political wrangling. AIG has been trying to sell the unit for some 15 months as part of its plans to help pay back the U.S. government for its $180 billion bailout, but regulatory issues have dogged the sale process and might yet delay it further. The buyer group, called Ruen Chen Investment and comprising Ruentex Industries Ltd and shoe maker Pou Chen Corp , signed a deal on Wednesday for the 97.57 percent of Nan Shan that is for sale, Ruentex said in a statement to the Taiwan stock exchange.