China Life (2628.HK), Taikang Life, China Investment Corp. (CIC) and Ping An Insurance Group (2318.HK) are among the mainland institutional investors looking to pick up substantial stakes in AIA, the Asian business arm of US insurance conglomerate AIG (AIG.NYSE), the Financial Times reported, quoting sources familiar with AIG’s US$20 billion initial public offering this month. CIC, the country’s sovereign wealth fund, is interested in picking up a stake worth US$250 million, after initially spurning the company for what sources said were political reasons. "[Chinese firms] did not want to be seen as bailing out the US and to be seen as rescuing AIG," one banker said. AIG is selling off AIA to raise cash to meet bailout obligations to the US government. AIG has the option to increase the stake it is selling from 49% to 59%, depending on demand. Shares will be priced between HK$18.38-19.68 (US$2.36-2.53).
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