TAIPEI, Nov 10 (Reuters) - American International Group Inc is planning to sell its Taiwan life insurance unit for US$2-2.5 billion, the Economic Daily reported on Monday.

The troubled insurer would unload the entire unit, Nan Shan Life, more than the 49 percent previously planned, to attract potential buyers such as Taiwan's Cathay Financial and Fubon Financial, the paper said, citing unnamed market sources.

Cathay is parent of Taiwan's biggest life insurer, while Fubon said recently it would acquire Dutch financial group ING's insurance business for US$600 million.

The U.S. group has asked Citigroup and Goldman Sachs to advise on the sale of the unit, the paper said.

On Sunday night, AIG's board was nearing approval of a revised federal bailout to replace a previous $85 billion rescue plan, according to the Wall Street Journal, which cited people familiar with the matter.

Nan Shan had previously said it planned to raise T$47.22 billion ($1.45 billion) by selling new shares to AIG, as Taiwan insurers scramble to raise new funds as portfolio values plummet. (US$1=T$32.8) (Reporting by Faith Hung; Editing by Ken Wills) Keywords: AIG TAIWAN (faith.hung@reuters.com; +8862 2508 0815; Reuters Messaging:faith.hung.reuters.com@reuters.net)

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