ABN to hand over operations to Deutsche early 2010
* Deutsche will get some Dutch ABN operations in spring 2010
* Sale forced by European Commission on competition worries
* ABN, Fortis Bank Nederland integration starts in April
* CEO sees ABN privatisation in 2013 or 2014
* CEO declines comment about role at bankrupt DSB Bank (Adds signing and price of deal, timing of ABN/Fortis merger)
AMSTERDAM, Dec 23 - Dutch state-owned bank ABN AMRO [ABNNV.UL] will transfer some corporate client operations to Deutsche Bank (DBKGn.DE) to pave the way for ABN's merger with Fortis Bank Nederland, ABN AMRO said on Wednesday.
The Dutch state, which nationalised the Dutch operations of ABN and Fortis (FOR.BR) last year, is merging ABN with Fortis Bank Nederland [FORTH.UL] and agreed last month to sell some of ABN's Dutch activities to Deutsche Bank. [ID:nLJ718602]
The European Commission has demanded the sale of about 10 percent of ABN's corporate operations to keep the Dutch banking sector for small to medium-sized companies competitive.
ABN AMRO and Deutsche signed the deal on Wednesday and closing of the transaction is expected to take place in the early spring of 2010, ABN said in a statement.
The sale of ABN's commercial bank Hollandsche Bank Unie, 13 advisory branches, two corporate clients units, and a factoring portfolio costs Deutsche Bank 700 million euros ($1 billion) and ABN AMRO will take a loss between 800 and 900 million euros on the deal, including a provision due to a credit guarantee, ABN said.
ABN AMRO expected to book the loss as soon as the ABN assets were legally separated from the company, it said.
The integration of ABN operations with Fortis Bank Nederland could start in April, ABN Chief Executive Gerrit Zalm told reporters.
The combined bank of ABN and Fortis Bank Nederland will be the Netherlands' third-largest bank in terms of balance sheet total after ING (ING.AS) and unlisted Rabobank [RABO.UL], and will compete with Belgian KBC (KBC.BR) and Switzerland's UBS (UBSN.VX), among others.
ABN's privatisation could happen somewhere in 2013 or 2014, depending on the completion of the ABN-Fortis integration and the track record the combined bank had built up, Zalm said, echoing similar comments from the Dutch Finance Ministry last month.
The Dutch state's investments to buy and recapitalise ABN AMRO and Fortis's bank and insurance operations add up to 30 billion euros, but Zalm said this would not be the most important factor to determine the price for ABN.
Whether ABN has a stable profit or not will mostly determine the price. We can't say anything about that now, said Zalm, who served as a Finance Minister in several Dutch cabinets between 1994 and 2007. [ID:nLL183144]
Zalm declined to answer questions about his role at DSB Bank, where he served as chief financial officer last year and which went bankrupt in October. [ID:nLC637889]
Zalm only cited his interview with Dutch television show RTL Z last month, when he said he would step down as ABN CEO if an investigation into DSB's former executives would prove to judge negative about his role at DSB. (Editing by Hans Peters and Rupert Winchester)
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