Industry News

ING gets wiggle room on insurance sell-off

(Reuters) - Dutch financial services group ING (ING.AS)(ING.N) said it can potentially extend the sale of its worldwide insurance business beyond a 2013 deadline as long as it kicks off the process with a stockmarket listing.

Analysts said any delay could potentially help ING get a better price for its assets as markets improve.

ING, which is splitting up its insurance and bank operations and selling assets as part of European Commission approval for its state aid, may get more time if it has sold at least 30 percent of the assets earmarked for sale through an initial public offering (IPO), the spokesman said.

An ING spokesman cited an EU document, posted last week, which detailed the extension in a footnote.

“Whenever a divestment is being undertaken by an IPO process which has commenced and significant (30 percent or more) share placements have been made prior to the end of the divestment period, the Commission (in consultation with the Dutch State, ING and the Trustee) will actively consider allowing the entity more time to place remaining shares,” the document said.

ING shares fell 1.5 percent to 6.84 euros by 0915 GMT, underperforming a 0.8 percent decline in European insurance shares .SXIP. The stock rose almost 6 percent Monday to lead the sector.

ING has to sell some Dutch mortgage activities, ING Direct USA, and its insurance arm after getting 10 billion euros ($13.5 billion) in Dutch state aid in 2008 and state guarantees on 21 billion euros worth of U.S. credit assets.

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