AMSTERDAM Jan 31 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
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
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
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.