UPDATE: ING CEO: Co Will Only Divest Units At Right Price
12 August 2009 - 10:47PM
Dow Jones News
Dutch financial services firm ING Groep NV (ING) is looking at
ways to raise cash to start paying back EUR10 billion of emergency
government aid, but it will only sell assets at the right price,
the company's chief executive said Wednesday.
Chief Executive Jan Hommen reiterated to a press conference that
ING plans to divest EUR6 billion to EUR8 billion over the next
three to five years.
ING received EUR10 billion of state loans last October to
stabilize its capital base at the height of the global banking
crisis.
The Amsterdam-based company, which is the Netherlands' largest
financial services group by market capitalization, said it wants to
repay the aid as soon as possible.
Hommen said ING has had buying interest for some of its assets,
but the offers it has received so far haven't met its valuations.
He said there remains "no lack of interest" in ING assets, and he
expects the market for selling them to improve.
"We are currently reviewing additional strategic options to
facilitate our continued transformation and realize our ambition to
repay the Dutch state," ING said earlier Wednesday, after reporting
a swing to a net profit of EUR71 million in the second quarter
after three consecutive quarters of losses.
However, the figure was down from EUR1.92 billion a year
earlier, and significantly undershot analyst expectations for
EUR388 million of net profit, sending the company's stock price
downward.
At 1330 GMT, ING shares were down EUR0.32, or 3.5%, at EUR8.80.
But the stock has been recovering after being down 15% at one
point.
Hommen said that now ING has stabilized its capital base, it has
more options to execute its restructuring program, but didn't
elaborate.
He said ING isn't in active talks with the Dutch government on
improving the terms of its EUR10 billion aid package, but it may
seek better terms in the future, without providing details. He said
banks elsewhere have received better terms on their government
bailout packages.
The executive added that he hopes for more clarity by year-end
from the European Commission on its regulatory review of the Dutch
government's aid package.
He said discussions with the commission on the restructuring
plan required for ING to gain the European Union's approval for the
aid will begin in the coming weeks, and as of yet the outcome of
the discussions is uncertain.
ING may have to adapt its restructuring plans to meet whatever
edict is laid down by the commission, whose decision could prompt
ING to make significant changes, he said.
Company Web site: www.ing.com
-By A.H. Mooradian and Robin van Daalen, Dow Jones Newswires;
+3120 571 5200; art.mooradian@ dowjones.com (Bart Koster in
Amsterdam contributed to this article.)