HONG KONG, Aug 21 (Reuters) - New China Trust, which wasleading a consortium of Chinese investors in a $4.8 billion bidfor American International Group Inc's (AIG)aircraft-leasing unit, pulled out of the deal in May, a personfamiliar with the situation said.
It was not immediately clear why New China Trust pulled outof the consortium or who would take over its role of leadinvestor.
A Bloomberg report earlier on Wednesday said New China Trustwithdrew from the consortium over concerns that its ties toChina's National Development and Reform Commission, whichapproves major foreign acquisitions, would prompt scrutiny.
New China Trust's chairman was an executive at NDRC'spredecessor. NDRC also owned a stake in New China Trust'smajority shareholder - but it sold out of that investment morethan a year ago.
The Chinese consortium also includes P3 Investments andChina Aviation Industrial Fund. It struck a deal with AIG latelast year to buy its International Lease Finance Corp unit buthas missed three payment deadlines.
AIG said earlier this month that talks with the consortiumwere ongoing and extended the deal close date to the end ofAugust.
Chief Executive Bob Benmosche also said that AIG was open topursuing an initial public offering for ILFC if it fails to sellit. AIG also has the option to sell to a different buyer.
ILFC is one of the biggest aircraft lessors in the world buthas recorded big write-downs in recent years on the value of theolder planes in its fleet. The agreed sale price is roughly halfof what AIG once said the business was worth.
Spokesmen for the Chinese consortium and AIG declinedcomment.
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