Chinatrust Talks To New Potential Partners On AIG Unit-Source

Chinatrust Financial Holding Co. (2891.TW) is in talks with potential new partners to bid for the Taiwan unit of American International Group Inc. (AIG) after the collapse of its bidding consortium with three private equity firms, a person familiar with the matter told Dow Jones Newswires Wednesday.

Bain Capital LLC, Oaktree Capital Management LLC and Morgan Stanley's private-equity unit have decided not to join Chinatrust's bid for Nan Shan Life Insurance Co., 95%-owned by AIG, because they couldn't agree with Chinatrust on some terms of cooperation, the person said on condition of anonymity.

"Right now Chinatrust is still in talks with new potential partners, who are foreign private-equity funds," the person said.

On Tuesday, Chinatrust Chief Investment Officer Daniel IK Wu said the company is capable of acquiring and integrating Nan Shan. American International Group Inc.'s (AIG) Taiwan unit.

Wu couldn't immediately be reached for comment.

Chinatrust, Taiwan's largest credit-card issuer, is competing with Cathay Financial Holding Co. and Fubon Financial Holding Co. to acquire Nan Shan in a deal that will likely total US$2 billion.

Interested investors are required to put in bids Aug. 28, people familiar with the deal said.

-By Perris Lee Choon Siong, Dow Jones Newswires; [phone]; [e-mail]