UPDATE 1-ING seen up after Dutch govt, Taiwan moves

(Adds Taiwan deal, ING CFO, asset manager comments)

AMSTERDAM/TAIPEI, Oct 20 (Reuters) - The Dutch government has agreed a 10 billion euro ($13.5 billion) cash injection into financial group ING (ING.AS), and ING shares are expected to rally on Monday after a 27.5 percent slump in the previous session.

ING sought government help to shore up its core capital and restore investor confidence after a weekend of intense negotiations and following the partial nationalisation of rival Fortis (FOR.BR) two weeks ago. [ID:nLJ78025]

ING has also agreed to sell its Taiwan life insurance unit to Fubon Financial (2881.TW) for $600 million, it said on Monday. [ID:nTPU000762]

"We are in a large financial storm, and the storm has been building in recent weeks. We wanted to make sure we had a buffer, a buffer large enough to carry us through the storm," ING Chief Financial Officer John Hele told CNBC.

"Our shareholders and customers, all our stakeholders don't have to worry about ING group."

A first indication on how shareholders receive the cash infusion will be ING's market valuation, which fell to 15.3 billion euros on Friday after the group said it would post a 500 million euro net loss in the third quarter, hit by the credit crisis.

"The deal is better than expected. I expect that the stock will go up this morning. A share issue would have been much worse and would not have been possible in the current market," said Fred Huibers, asset manager at Haags Effectenkantoor, who holds ING shares.

Huibers estimated ING shares would rise 15 to 18 percent at the opening.