TAIWAN'S FUBON MAY CONSIDER BID FOR NAN SHAN LIFE INSURANCE

Taiwan's Fubon Financial Holding Co. (TAIEX:2881) hinted Wednesday that it is considering the possibility of acquiring Nan Shan Life Insurance Co., after the government rejected a bid by a Hong Kong consortium to buy the company.

"We would evaluate the possibility of buying any asset at a reasonable price, " Fubon President Victor Kung said in response to reporters' questions on the matter, on the sidelines of a local forum.

Fubon, Taiwan's second largest financial company, is among local enterprises such as Chinatrust Financial Holding Co. (TAIEX:2891) and Cathay Financial Holdings Co. that are reportedly interested in acquiring Nan Shan Life -- the Taiwan unit of American International Group Inc. (AIG).

It was reported that Fubon lost a previous bid for Nan Shan Life to the consortium, which comprises Primus Financial Holdings Ltd. and China Strategic Holdings Ltd.

However, Kung declined to confirm that Fubon had bid for Nan Shan Life and he declined to give any further information about his company's plans with regard to Nan Shan Life.

A Taiwanese spokesman for AIG told CNA in a telephone interview Wednesday that the group has no intention of looking for a new buyer at this time.

On Tuesday, Taiwan's Financial Supervisory Commission (FSC) rejected an application for the Hong Kong consortium to buy AIG's 97.57 per cent stake in Nan Shan Life for US$2.15 billion.

The FSC cited doubts over the consortium's long-term commitment to run Nan Shan Life and its financial capability to raise funds if necessary.

In a statement Tuesday, the AIG expressed disappointment over the FSC's conclusion and said it will discuss with the consortium whether to appeal the decision.

The sale of Nan Shan Life sparked controversy in Taiwan as allegations surfaced about the involvement of Chinese investors in the consortium.

Chinese investors are banned by law from investing in Taiwanese insurance companies.

Nan Shan Life's labor union has staged a series of street rallies to call attention to the workers' concern that the proposed sale would jeopardize their rights.

Founded in 1963, Nan Shan Life has some four million policyholders. It has NT$1.73 trillion (US$54.079 billion) worth of assets, which account for 15.32 per cent of the total in Taiwan's insurance sector.

The insurance company has a net worth of NT$140.3 billion, which amounts to more than 30 per cent of the value of the entire insurance industry in Taiwan.