Humbled insurance giant AIG hit another hurdle in its efforts to sell assets and pay back some more of the roughly $97 billion it still owes American taxpayers today when Taiwan regulators blocked the $2.1 billion sale of AIG’s Nan Shan insurance business to China Strategic, whose primary business is making batteries.
Taiwan has misgivings about China Strategic’s connections to a hostile mainland China. Furthermore, Taiwan’s economics ministry said that the company doesn’t have enough experience in the insurance business to operate Nan Shan. Analysts told Reuters that the move was not a surprise:
“It did not come as a surprise,” said an analyst at a European financial institution, who asked not to be identified.
Cheerleaders of AIG’s efforts to pony up the loot it still owes the U.S. government need not despair entirely. Reuters reports that a “retired Taiwanese diplomat” is readying a bid for Nan Shan and is securing backing from Japanese and Qatari investors.