New China Trust pulls out of $4.2 bln AIG unit bid - report

HONG KONG Tue Aug 20, 2013 11:56pm EDT

HONG KONG Aug 21 (Reuters) - New China Trust, which was leading a consortium of Chinese investors in a $4.2 billion bid for American International Group Inc's (AIG) aircraft-leasing unit, pulled out of the deal in May, Bloomberg reported on Wednesday.

The report, citing people with knowledge of the matter, said New China Trust withdrew from the group on concerns that its ties with a Chinese regulator would prompt added scrutiny of the deal. The consortium has missed three deadlines to make payment and earlier this month AIG extended the deal closure date to the end of August.