AIG plans to sell Taiwan insurance unit for $2-2.5 bln-paper

TAIPEI, Nov 10 (Reuters) - American International Group Inc
(AIG.N) is planning to sell its Taiwan life insurance unit for
US$2-2.5 billion, the Economic Daily reported on Monday.

The troubled insurer would unload the entire unit, Nan Shan
Life, more than the 49 percent previously planned, to attract
potential buyers such as Taiwan's Cathay Financial (2882.TW) and
Fubon Financial (2881.TW), the paper said, citing unnamed market
sources.

Cathay is parent of Taiwan's biggest life insurer, while
Fubon said recently it would acquire Dutch financial group ING's
(ING.AS) insurance business for US$600 million. [ID:nTPU000762]

The U.S. group has asked Citigroup (C.N) and Goldman Sachs
(GS.N) to advise on the sale of the unit, the paper said.

On Sunday night, AIG's board was nearing approval of a
revised federal bailout to replace a previous $85 billion rescue
plan, according to the Wall Street Journal, which cited people
familiar with the matter. [ID:nN09413600]

Nan Shan had previously said it planned to raise T$47.22
billion ($1.45 billion) by selling new shares to AIG, as Taiwan
insurers scramble to raise new funds as portfolio values plummet.
(US$1=T$32.8)
(Reporting by Faith Hung; Editing by Ken Wills)