Shareholders in financial services group ING have given their backing to the break-up of the group and a new rights issue to help pay back a €10bn state support bill.
ING is splitting off its insurance operations as part of a restructuring deal agreed with the European commission to win approval for the state bail-out.
‘We think a split is preferable to keeping the bank and insurer together. It will strongly reduce the risk profile, and this will benefit us as investors,’ a spokesman for Dutch shareholder group VEB was quoted as saying by Reuters.
Later this week, ING is set to publish the prospectus for its €7.5bn rights issue which will be used to pay off the first half of the state aid.
ING currently has two billion shares outstanding and experts told Reuters more than one billion new shares may be issued.
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