UPDATE: HSBC Bids For ING Private Banking Assets-Source
September 04 2009 - 7:49AM
Dow Jones News
HSBC Holdings PLC (HBC) has submitted a bid for ING Groep NV's
(ING) private banking assets, a person familiar with the situation
said Friday.
The Dutch bank has put up both its Asian and Swiss private
banking assets for sale and potential buyers can choose to bid for
either one or both assets. The person declined to say how much HSBC
has bid for the assets or whether it was bidding for one or both of
the assets.
People familiar with the situation said Thursday that ING had
received five bids for its Asian private banking assets and three
bids for the Swiss operations. Bidders for the assets included DBS
Group Holdings Ltd. (D05.SG) and Swiss wealth manager Julius Baer
Holding AG (BAER.VX).
Analysts said Singapore's DBS is likely to have bid for just the
Asian assets, while Julius Baer likely bid for both the Asian and
Swiss assets as part of moves to strengthen its foothold both at
home and abroad.
Another person familiar with the situation said Friday that ING
will name the preferred bidder for the asset sale in 10 days. Then,
the preferred bidder will go into more detailed negotiations with
ING over price and other specifics, the person said.
Proceeds from the sale, which people familiar with the matter
have said should come to around US$2 billion, will help ING pay
down the EUR10 billion in bailout funds it received from the Dutch
government in October.
At the end of June, ING's Asian private banking operations had
around US$16 billion of assets under management, while its Swiss
operations had around US$15 billion of assets under management.
In Asia, ING's private banking operations covers the
Philippines, Thailand, and Indonesia, as well as China, Hong Kong,
and Taiwan.
-By Amy Or, Dow Jones Newswires; 852-2832 2335;
amy.or@dowjones.com