AIG Purchases Stake in Taiwan’s Yageo

American International Group has purchased a 3 percent stake in Taiwan resistor and capacitor maker Yageo Corp. AIG reportedly bought 32.3 million shares for $50 million. Yageo was reported by Reuters news service as saying AIG expects Yageo’s recent 650 million euro purchase of Philips Electronics passive components business to improve competitiveness.

Reuters also reported that AIG’s investment team expects the Taiwan firm’s profits to maintain a 35-50 percent growth rate even in the event of a downturn in the passive components business in the next two years, Yageo said in a statement. The purchase would make AIG the biggest foreign investor in Yageo, according to the statement.