Unfortunately, PE firms will probably not be interested in the online bank.
Buyout shops likely won’t be interested in ING Direct USA, because it’s just too big, two sources say. A sale of the company could fetch $10 billion, the New York Post said.
ING Direct is know for the bright orange ball that is its logo (in New York, the ING cafe is one of the few places I know to get Peet’s coffee). ING is looking to sell its online banking business to repay Dutch state aid, my compadres at Thomson Reuters say.
ING’s U.S. banking unit had $77.7 billion in deposits at the end of 2010, which include $69.9 billion in money market deposit accounts, Bloomberg said. Because of these deposits, any buyer would likely have to be a bank, one PE source says. Buyout shops won’t be interested if ING Direct USA is sold on a standalone basis, a banking source says.
BankUnited or IndyMac may take a look at ING Direct but will likely not bid for it, the PE exec says. BankUnited is owned by WL Ross & Co. Carlyle and the Blackstone Group. An investor group, which includes Dune Capital Management and J.C. Flowers, owns IndyMac.
ING Direct USA is “more likely to go to a large domestic institution that doesn’t have a substantial online presence and wants to use this as a springboard,” the PE source says.