ING Groep 'abandons sale of insurance business'
An expert has said ING Groep probably could not get a good enough price for its insurance arm.
ING Groep has abandoned plans to sell its Belgian insurance arm, a source has stated, which may mean business negotiations will need to go in a different direction.
The person told Reuters the Dutch financial services group would instead lump the unit in with European and Asian operations, which will soon be sold at one of two initial public offerings planned to sell parts of the company from across the world.
If a deal had gone ahead for another firm to acquire the Belgian insurance business, the transaction would have been worth between €500 million (£420 million) and €700 million, the insider revealed.
Head of research at Keijser Capital Nico van Geest stated: "It was logical to sell it separately to a bank, but in this market, every price is too low."
On the Euronext index, shares in ING were up 1.2 per cent by 11:00 CET to sell at €5.52.
Posted by Ron Maverick
Source: Reuters, December 28th