ING Groep (ING) has moved a step closer to repaying the $14.3 billion loan it took out from the Dutch government in October 2008 during the height of the financial crisis.
The company has asked for final bids for its private banking business with the price believed to be around $1.8 billion.
ING is looking to raise as much as $11 billion to boost capital by selling assets. The goal, of course, is to get the money the company needs without mortgaging too much of the life insurance and banking giant’s future.
One of the assets on the block in the current round of bidding is ING’s private banking business in Asia. That’s a fast growing market—and therefore probably attractive to bidders–but ING’s Asian business is still relatively small.
Still the chance to tap China’s increasing number of high net worth individuals will be tough to pass up. In 2008 China had the fourth-highest number of individuals with at least $1 million in assets to invest in the world, according to Merrill Lynch and Cap Gemini.
In February ING raised $almost $2 billion by selling its 70% stake in Canada’s largest property and casualty insurer. In July the company also agreed to sell its annuity and mortgage business in Chile to Corp Group Vida Chile for $350 million.
(Full disclosure: I own shares of ING in my personal portfolio.)
Jim
Do you know anything about the ING preferred (IDG) issues that trade in the U.S. They pay about 14% interest.
Jim,
I have posted on this subject before, and I agree with georic’s posting above- can you provide any guidance on what the facts mean in terms of the direction of this stock, or the timeframe for achieving the stock’s target price. We all realize, of course, that any targets or direction you provide are estimates based on assumptions and the current news/facts available. But pure facts without some statement of “consequences” or impact on direction of the stock is of little value to those of us who are relatively new to this game.
Many thanks for considering this point.
Best,
Bhallock34
Hi Jim,
The font must be a sign of our age. I appreciate not using the reading glasses. LOL
lol nice font jim
Thanks Jim…great post. But you scared me with the giant font.
Jim, thank you for all these updates.
I know I sometimes feel manipulated by analists, and welcome therefore your giving plain facts. I nevertheless miss some comments from you, as to the consequences of these facts, short and long term, as you see them.
Jim,
A bit off subject but what are your thoughts on large investors are trying to “undermine” the recovery to induce a pullback so they can get in?
I know a lot of managers have been in cash for a long time just hoping that the market has a large correction to get back in. Otherwise, clients will take money out. I think everyone is kicking themselves some for not buying more.