CVC in SNS Reaal talks over 1.8 bln euro capital injection-paper

AMSTERDAM Thu Jan 31, 2013 7:21am GMT

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AMSTERDAM Jan 31 (Reuters) - A consortium lead by private equity firm CVC Capital Partners is in talks to pump up to 1.8 billion euros ($2.4 billion) into Dutch banking and insurance group SNS Reaal, a local newspaper reported on Thursday, citing unnamed sources.

If the deal goes ahead, the three biggest Dutch banks, Rabobank, ABN AMRO and ING, would contribute a further 400 million euros in the form of subordinated loans to SNS Reaal, Dutch daily Het Financieele Dagblad said.

SNS Reaal received 750 million euros of state aid in 2008 at the height of the financial crisis and is expected to require a second state bailout because of losses at its property unit.

It is due to present a restructuring plan next month when it reports earnings.

CVC could not be reached for immediate comment.

SNS Reaal said in a statement it was focusing on a process where "private investors also participate" in its restructuring plan but that there was no guarantee this would be successful, reiterating what it said on Monday.

If the talks were successful, there would be a significant share issue and a reorganisation of subordinated debt, SNS Reaal said.

ABN AMRO, ING and Rabobank declined to comment.

The newspaper said there was no agreement on a deal yet due to uncertainty over some issues, including possible claims for certain insurance products, regulatory approval from the Dutch central bank, and approval from the Dutch Finance Ministry.