China Life and two other Chinese investors have withdrawn from bidding for stakes in American International Group’s Asian unit ahead of its planned initial public offering, state media said Friday.
China Life, the nation’s largest life insurer, had planned to jointly bid for AIA shares with private conglomerate Fosun Group and state-run China Cinda Asset Management, the 21st Century Business Herald reported, citing unnamed investment bankers. But the three companies have decided to temporarily pull out of the process on concerns it could be priced too high, the report said.
The Chinese companies were not immediately available to comment when contacted by AFP. IA reportedly plans to list in Hong Kong in the fourth quarter of this year and hopes to raise as much as 23 billion dollars. At least four consortia made up of private Chinese investors have approached US insurance giant AIG about acquiring its Asian business, the Hong Kong-based South China Morning Post reported last month.
Sovereign wealth funds from Singapore, Abu Dhabi, Kuwait and Qatar also have expressed an interest in AIA, according to the Financial Times. AIG is seeking to repay billions of dollars in American government bailouts and has said previously it will “proceed as soon as practicable” with the listing plan.
Shangai, Aug 13, 2010 (AFP)
