Financial Regulatory Forum

Taiwan to ban job cuts in financial firm mergers – paper

January 11, 2010

    TAIPEI, Jan 11 (Reuters) – Taiwan’s government is planning to draft a law that bans financial institutions from laying off employees when they acquire counterparts, the United Evening News reported on Monday.
   The draft would mostly hit AIG’s <AIG.N> Taiwan Nan Shan insurance unit, the paper said.
   The U.S. giant agreed to sell the Nan Shan unit for $2.15 billion to China Strategic <0235.HK> and Primus Financial, ending a months-long auction that involved private equity firms and local players. [ID:nTP307656]
   Under the plan, the Council of Labor Affairs would require financial firms to retain all of the employees at the company being acquired for two to three years, said the Chinese-language paper.
   The Financial Supervisory Commission, Taiwan’s top financial regulator, objected to the draft, the paper said. (Reporting by Faith Hung; Editing by Jacqueline Wong) ((faith.hung@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: faith.hung.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))
Keywords: TAIWAN FINANCIAL
  
Monday, 11 January 2010 09:03:53RTRS [nTOE60A057] {C}ENDS

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