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Report: General Electric and Capital One Bidding for ING’s Online Banking Business (GE, COF)
6/7/2011 9:07:00 AM
According to a Bloomberg report on Tuesday, General Electric Company ( GE ) and Capital One Financial Corp. ( COF ) have submitted bids to buy ING Groep NV's online banking business.
People with knowledge of the matter reported the sale of ING Direct USA could raise around $9 billion. A deal could be struck by the end of June, said the report.
Reportedly, GE has made an all-cash offer for ING Direct, while COF's bid includes cash and stock. ING Direct is the largest online bank in the U.S., with deposits totaling $81.6 billion.
Other potential suitors for ING are said to be Ally Financial Inc., CIT Group Inc. ( CIT ), and SJB National Bank.
General Electric shares rose 15 cents, or +0.8%, in premarket trading Tuesday, while Capital One shares were mostly flat.
The Bottom Line
Neither General Electric Company ( GE ) nor Capital One Financial Corp. ( COF ) are currently recommended, holding Dividend.com DARS™ Ratings of 3.4 and 3.3 out of 5 stars, respectively.