ING Asks to Divest Westland With Insurer, Almunia Tells Dagblad

European regulators are studying alternatives offered by ING Groep NV (INGA) for the sale of its mortgage lender WestlandUtrecht Bank, European Union Competition Commissioner Joaquin Almunia told Het Financieele Dagblad.

ING has indicated a sale, one of the EU’s conditions for approving state aid in 2008 and 2009, is impossible. The Amsterdam based company also has to divest its entire insurance operations before the end of 2013.

The EU will study alternatives offered by ING, including an integration of WestlandUtrecht Bank in its Dutch Nationale- Nederlanden insurance unit, the newspaper reported today, citing Almunia.

Almunia also expects ING will agree on compensation terms for not paying coupons to the Dutch state over a bailout received in 2009, even as it reported profits, according to the paper.

To contact the reporter on this story: Maud van Gaal in Amsterdam at mvangaal@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net