Chinatrust's share sale gets rejected by Taiwan regulator

The rejection comes after Chinatrust said on Nov. 18 it plans to sell 1.17 billion shares, as part of the placement, to China Strategic Holdings Ltd. in a deal to acquire a 30 percent stake in American International Group Inc.'s Taiwan unit.

China Strategic and Primus Financial Holdings Ltd. last month won a bid, beating Chinatrust, to buy AIG's Nan Shan Life Insurance Co. for $2.15 billion.

“We will discuss with the regulator the reasons for the rejection and resubmit the application with all the information required,” Vanney Cho, a vice president at Chinatrust, said today.

Cho declined to comment on whether the rejection is linked to plans to buy Nan Shan. Chang Ming-daw, director-general at the banking bureau of the Financial Supervisory Commission, didn't immediately answer calls to his mobile phone.

The regulator rejected the application after the company failed to respond to a Sept. 28 request by the bureau for more details of the placement, Chinatrust said in a stock exchange filing today. The financial services company submitted the application on Sept. 4.

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