M&A

27 November, 2009

CORRECTED - UPDATE 1-ING prices rights issue at 4.24 euros/shr

(Corrects dilution to nearly 47 percent from nearly 90 percent in first paragraph)

* Offers 6 new shares for 7 existing shares held

* Expects to issue 1.768 billion new shares

* Discount 52.4 pct to Thursday close; 37.3 pct to TERP

* Rights issue valued at 7.5 billion euros

By Gilbert Kreijger

AMSTERDAM, Nov 27 (Reuters) - ING (ING.AS) priced its rights issue at 4.24 euros per new share at a discount comparable to recent European rights issue, which will dilute ING's shareholders' holdings by nearly 47 percent.

ING, which wants to raise 7.5 billion euros to pay back state aid, said in a statement it offered 6 new shares for every 7 existing shares held by shareholders.

The offer price represents a 52.4 percent discount to Thursday's closing price of 8.916 euros and a 37.3 percent discount to the theoretical ex-rights price, the weighted average price of Thursday's close plus the new issue price.

UK banking group Lloyds (LLOY.L) priced its rights issue at a 39 percent discount on Tuesday, while Societe Generale's (SOGN.PA) issue was offered at a 27 percent discount last month.

The total shares to be issued is 1.768 billion new shares, on top of over 2 billion ING shares currently outstanding. ((gilbert.kreijger@thomsonreuters.com; +31 20 5045007; Reuters Messaging: gilbert.kreijger.reuters.com@reuters.net))

Source: http://www.reuters.com