ABN gets state money

By Harro ten Wolde

AMSTERDAM (Reuters) - The Netherlands will inject 2.5 billion euros (2.1 billion pounds) into state controlled ABN AMRO to help split the group up, but the part of the bank owned by RBS (RBS.L) is expected to have a shortage of capital, the Dutch Finance Ministry said on Friday.

The Dutch government bought Fortis Bank Nederland FORTH.UL last October, including its interests in ABN AMRO Nederland after former parent Fortis (FOR.BR) lost the confidence of its customers and shareholders.

A consortium consisting of Belgian-Dutch Fortis, Royal Bank of Scotland (RBS) and Spain's Santander (SAN.MC) had bought the ABN AMRO group for 70 billion euros in 2007.

When the Dutch government intervened, it acquired a stake in some ABN AMRO assets that had not been assigned to consortium members.

"These assets now have a negative value and the share of the Dutch state in that value is currently 2.2 billion euros," Dutch Finance Minister Wouter Bos wrote in a letter to parliament.

When combined with other costs related to splitting up ABN AMRO between the consortium members, there was an immediate need for 2.5 billion euros, Bos said, adding that without the recapitalisation, the break-up -- expected by the end of the year -- could not take place.

"If Santander withdraws its capital as part of the separation, there will be shortages (of capital) in the parts (controlled by) RBS and the Dutch state," said Bos.

He added that both the Dutch government and RBS needed to "adequately capitalise their future parts."