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    ING Groep to float stake in US arm for $1.5 billion; business worth much less than book value

    April 17 AMSTERDAM — ING Groep NV says it will sell a 25 percent stake in its U.S. arm for around $1.4-$1.5 billion in an initial public offering, as part of measures demanded by the European Commission to compensate after ING received a bailout from the Dutch government in 2008.

    ING U.S. has insurance, investment and retirement businesses.

    The IPO price range suggests ING U.S. is worth $6 billion, less than half the $14.2 billion the company had valued it on its books. ING said it expected the listing to lead to a 1.6 billion euros ($2.1 billion) reduction in shareholders’ equity, but the offering “will not have a material impact on the regulatory capital of either ING insurance or ING bank.”

    The company said Wednesday it will use proceeds to pay down debt.

    Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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