Tuesday, September 4, 4:57 PM ING Bank intends to sell its entire 54M share stake in Capital One (COF) in a public offering. ING is the largest stakeholder in Capital One (about 10% of the company), having received the shares as part of Capital One's purchase earlier this year of ING Direct. Capital One -0.8% AH. (PR). This is what + another $3 B dollars US?
we'll know tomorrow because:
Financial details will be released after pricing of the transaction which is expected to take place prior to opening of the New York Stock Exchange on 5 September 2012. The transaction is expected to settle on 10 September 2012.
This is huge(ish) - but with ING's luck Israel will bomb Iran.
ING really got extreme treatment by EU
ING Wins Challenge Forcing EU to Reconsider Bailout Terms
March 2 (Bloomberg) -- ING Groep NV won a court ruling forcing European Union regulators to re-examine the conditions they imposed on the Dutch lender's government rescue in the wake of the financial crisis.
The EU's General Court said the European Commission wrongly considered a revision of repayment terms as 2 billion euros ($2.65 billion) of additional aid on top of 10 billion euros it received in 2008. The court struck down part of the EU's decision, which will force regulators to re-open their assessment of part of the Dutch government's bailout to the bank.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/03/02/bloomberg_articlesM091OV6KLVR401-M095K.DTL#ixzz1nyQKCRzM
ING is a European company that owns not only ING Direct USA but other insurance and banking companies world wide - this is the depository stock representing that company in the US - unless I'm very mistaken this stock doesn't represent only ING Direct & will continue to trade. Under the terms of the agreement, ING will receive USD 6.2 billion in cash and USD 2.8 billion in the form of 55.9 million shares in Capital One (I think this is about 10% of COF).
"soon" I guess that means NOT today
The Federal Reserve said it expects to issue a decision soon on Capital One's $9.2 billion bid to buy ING Groep NV's U.S. online banking unit, but it won't be making a further announcement Monday. "The board considered the application at its meeting this afternoon and expects to issue a decision soon. No further announcement is expected today," the central bank said in a statement.
no it means that two issues that are not traded are being purchased at 80% of face value. read the 2nd post with the links.
If it meant the other thing the prices on those you held would have popped up.
Most of the preferred hybrids are trading based on their rate of return relative to the risk &/or ratings
the first according to the ING investor relations site is listed on Luxenmbourg Stock exchange (I was unable to find what it's listing is or what it has been trading at) , the 2nd is a non listed issue.
the offer is at 80% of par which for your IND would be good news but its not an offer for any of the US traded preferred hybrids.
you don't get it .. ING Groupe sells ING direct US bank and gets some share of Cap one (internally) you don't get any stock.
ING is only selling the US online bank - this stock is representative of ALL of ING group (its a European bank, Ins co., etc.) and this stock is a an American depositary receipt (ADR): a stock that trades in the United States but represents a specified number of shares in a foreign corporation.
The preferred (I think) are based on the overall operations or ING Group not ING direct. So they are not part of the Capital one deal. What you get as a share holder is ING's partial ownership of Cap One and the reduced balance sheet (asset and liability) of ING direct - which the EU had previously ordered ING to separate it'self from.
another item to keep in mind is the volume of daily trade relative to the amount you want to sell/buy - some of the ing preferred's trade in lower volume than others.
IGK really suffered by hitting 26 at one point today.
Most of the preferred's follow overall interest rate trends with the exception of really bad news.
I compare the yield and make sure I'm not too close to the call price in some cases. for instance IGK pays at about 8.17% now based on current price and AFF (AIG related) pays 7.28%
I've been loving the preferred's since the low point when I bought in.
somewhere I read that the long term debt yield on gov't increased the yield demand on other debt (preferreds price being a factor of both the yield and risk .. risk didn't increase Friday just the yield) if you compare the price on IGK for example the effective yield to price (which decreased) increased the rate by about .27%
"The 30-year bond met with especially tepid demand in its auction Thursday, and saw its yield briefly top the 4% mark Friday, before settling at 3.988%, a jump of 24 basis points (0.24 percentage point) on the week."
Considering that the same ratings agencies haven't updated their rating of ING's preferred hybrids: IGK, ISF, IDG, and others.
Also what is ING doing with this money? Anyone following what Aergon is doing with regard to EU repayment? All speculative but very interesting.
Aug 18 (Reuters) - ING Bank NV late Tuesday sold $750
million of senior unsecured notes in the 144a private placement
market, said IFR, a Thomson Reuters service.
Bank of America Merrill Lynch, Morgan Stanley, and ING
Bank were the joint bookrunning managers for the sale.
BORROWER: ING BANK NV
AMT $750 MLN COUPON 3.00 PCT MATURITY 9/1/2015
TYPE SR NTS ISS PRICE 99.372 FIRST PAY 3/1/2011
MOODY'S Aa3 YIELD 3.058 PCT SETTLEMENT 8/24/2010
S&P A-PLUS SPREAD 162.5 BPS PAY FREQ SEMI-ANNUAL
FITCH A-PLUS MORE THAN TREAS NON-CALLABLE
there is an entire market out there .. ING doesn't exist in a vacuum and it has the misfortune of hitting the same day as other bad news.
the biggest difference is liquidity some of these just have more volume and are easier to get in and out. (IGK vs ISF).
Some have higher coupon
and somewhere in the prospect-i there is detail about which are div accumulative.
I'd look at http://www.quantumonline.com/ summaries for each
I love my ING capital hybrid preffereds but occasionally leave and come back.