There seems to be no end to the troubles for the US insurance company, AIG. The regulators in Taiwan have denied permission to sell one of its units in the country to a Chinese firm.

The total worth of the deal is $2.2 billion and the reasons cited for this is that the sale is against the regulations of the nation.

AIG was going for this sales since it wants to use the proceeds for payback of its government bailout. It was first decided in last October that the unit in Taiwan will go up for sale.

The Chinese firm which is involved in the deal is China Strategic. Analysts believe that there is nothing unusual about this step. It was no surprise and AIG should not have entered into the deal without looking into the details.

No comments were made from either of the related parties. And post the declaration shares of AIG as well as China Strategic went down heavily and as a result the share price of China Strategic was suspended.

Meanwhile it is said that all the parties involved in the funding of the deal are left in the middle.