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American International Group [ AIG 35.57 
-1.13 (-3.08%) ] could learn the fate of the stalled $2.2 billion sale of its Taiwan unit Nan Shan Life Insurance as early as Thursday, when Taiwan's parliament will review a report on the deal from the top financial regulator.
The Financial Supervisory Commission (FSC) has set five conditions for the deal, including ensuring the buyers' funding sources meet Taiwan regulations, according to a copy of the report seen by Reuters on Wednesday.
AIG agreed to sell Nan Shan to China Strategic and Hong Kong-based financial services firm Primus Financial in October, but has not been able to close the deal mainly due to concern in Taiwan that the buyers are backed by China-sourced funds, which are prohibited in the island's financial sector.
"If lawmakers ask the regulator to go back and 'further understand' the deal tomorrow, that implies it could be rejected," said an official of the Investment Commission, which oversees in-bound and out-bound investments.
"If that did not happen, chances are good for the government to approve the deal," said the official, who asked not to be identified as he was not authorised to speak to the media.
The Investment Commission has looked at the deal and has given its findings to the FSC, the island's top financial regulator. The FSC will have the final say after lawmakers have given their views.
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