Capital One Financial (NYSE:COF) is just one of several financial institutions expected to make a bid for ING Direct, the U.S. arm of Dutch banking company ING Groep NV, which has been required to divest to business segment as part of its multi-billion dollar bailout from the European Union.
Capital One (NYSE:COF) the 13th largest U.S. bank by assets as of the end of 2010, is expected to make a bid for the ING Direct USA, Bloomberg reported earlier this morning.
Other companies that have previously expressed interest in purchasing ING Direct include General Electric Co. (NYSE:GE), CIT Group Inc. (NYSE:CIT) and Citigroup Inc. (NYSE:C) previous Bloomberg reports indicated, though talks with the latter have already ended. Analysts have also reportedly said that ING Direct could garner as much as $10 billion through a sale. ING Groep was required to divest its U.S. banking unit as part of the condition of its $14 billion (10 billion euro) bailout from the European Union in late 2008.
ING Direct, based in Wilmington, DE, is currently the largest direct bank and thrift in the United States with $87.8 billion in assets and $77.7 billion in deposits as of the end of 2010, according to the FDIC. The bank says its served roughly 7.5 million American since it was formed in 2000.
ING Direct is in very good financial health, and received a three-star rating on average from its customers who have rated in on MyBankTracker.
ING Direct spokesman Raymond Vermeulen couldn’t immediately be reached for comment on Monday morning. A Capital One spokesman also couldn’t immediately be reached for comment.