AIG cuts asking price for Taiwan unit: report

TAIPEI (Reuters) - American International Group has lowered its asking price for its Taiwan insurance unit to $1.8-2.0 billion, prompting interest from three investors, a local newspaper reported on Wednesday.

AIG had previous sought to sell Nan Shan Life, it's 95 percent-owned unit, for $2-2.5 billion, the Economic Daily reported, citing unnamed sources.

The lower price has attracted interest from a global private equity firm, Taiwan's Fubon Financial and China Life, the Chinese-language paper said.

An AIG executive is set to visit Asia to talk to the private equity firm because its offered price topped those of the other two, it said.

Officials at the companies could not be reached immediately for comment.

The sale comes as the bailed-out U.S. insurer seeks to raise cash to pay back government debt. AIG confirmed in May it was to speed up plans to list its Asian subsidiary through an IPO that could raise more than $4 billion.

At mid-day trading, shares of Fubon were down 2.2 percent while China Life had advanced 5.4 percent. Taiwan's broader market declined 0.87 percent.

(Reporting by Faith Hung; Editing by Ken Wills)