The head of Primus Financial Holdings, the fund attempting to buy Taiwan's Nan Shan Life Insurance in partnership with a Hong Kong shell company, said he was confident the island's regulators would not block the bid.
The planned US$2.15 billion purchase of stricken US insurer American International Group's Taiwan unit by Hong Kong-based Primus and battery trader China Strategic Holdings has been dogged by speculation in the Taiwanese media that the deal is funded with mainland cash.
But Robert Morse, the head of Primus, said: 'We disclosed the sources of funding to AIG and the regulators. There should be no problem as far back as the regulators need to look.'
Taiwan's Investment Commission turned down the Hong Kong consortium's first application to buy Nan Shan last month, saying it needed more details of their investor base.
Morse said Primus and China Strategic would resubmit the application next week.
Primus owns 20 per cent of the bid vehicle for Nan Shan, Primus Nan Shan. The rest is owned by China Strategic, which was a tiny battery trader before it raised HK$7.8 billion selling convertible notes to fund the deal.