Taipei, July 1, 2009 (CENS)--Some seven parties have reportedly tendered bids for Nan Shan Life Insurance, the Taiwanese subsidiary of AIG Group of the U.S., with Fubon Group and Ruentex Group, joining hands with private equity funds, being two front runners, according to Chinese-language Economic Daily News (EDN), sister publication of Taiwan Economic News (TEN).

The two groups appear to have high hope of winning out in the first-phase bidding, whose deadline for bid tendering is set at July 3, due to the stance of the Financial Supervisory Commission (FSC) against the acquisition of Nan Shan by private equity funds alone.

A noteworthy contender is the joint team of Fubon Group and private equity fund Trimus of Singapore, headed by Wu Jung-hui, former chief strategic officer of Fubon Financial Holding. Daniel Tsai and his brother Richard Tsai, chairman and vice chairman of Fubon Financial Holding, are reportedly major financiers behind Trimus. The bid underscores Fubon`s aggressiveness in expanding its presence in the local insurance market, following its acquisition of ING Life Insurance.

Yin Yen-liang, chairman of Ruentex Group, has also reportedly teamed up with private equity funds to bid for Nan Shan and is regarded as a black horse in the contest.

Other contestants include Chinatrust Financial Holding, Cathay Financial Holding, and private-equity funds KKR, Carlyle Group, and MBK.


(by Philip Liu)