Taiwan Secom makes alternative proposal for AIG Taiwan unit

TAIPEI Jan 4 (Reuters) - Home security firm Taiwan Secom Group (9917.TW) has proposed jointly running AIG's (AIG.N) Taiwan Nan Shan Life unit with the U.S. insurer and listing the unit in Taiwan in the latest twist in a year-long sale saga.

Taiwan Secom, partly owned by Japan's Secom (9735.T) and an affiliate of cement firm Goldsun (2504.TW), is setting up a holding company with Hong Kong investment firm Primus Financial to acquire a stake in Nan Shan, said Max Chu, a director of Taiwan Secom.

"We are being serious. We are not just looking around," he said, adding Taiwan Secom did not participate in the first round of bidding that AIG held last month.

Chu declined to give details on how much Taiwan Secom would spend to acquire part of Nan Shan, or the size of the stake it wants to buy.

AIG has been trying to sell Nan Shan since October 2009 as it looks to pay back the U.S. government for its bailout. A first deal was rejected by Taiwan regulators in August.

Ruentex Group, another Taiwan conglomerate, has emerged as the front runner to buy Nan Shan after a first round of bidding was held last month. [ID:nTOE6BM041]

Three Taiwanese banks also bid: Cathay Financial (2882.TW), Chinatrust (2891.TW) and Fubon (2881.TW).

Nan Shan is Taiwan's No.3 insurer by market share after the insurance arms of Cathay and Fubon and has assets of T$1.7 trillion ($56.5 billion). It lost T$12.7 billion in the second quarter or this year and T$12.5 billion in the third. ($1=T$30)