KKR Eyes Minority Stake in ING Direct USA

Leveraged-buyout company KKR (NYSE: KKR) is reportedly interested in acquiring a minority stake in Dutch lender ING Groep's (NYSE: ING) U.S. online bank, ING Direct USA.

General Electric (NYSE: GE) and Capital One Financial (NYSE: COF) submitted their bids for the U.S. unit last week. GE has made an all-cash offer, while Capital One is seeking a cash and stock deal.

ING Direct USA has $81.6 billion in deposits, $40.5 billion in mortgage loans, and $19.9 billion in mortgage-backed securities. The sale is expected to raise up to $9 billion. The proceeds from the sale will be used to repay Dutch government aid ING received during the financial crisis in November 2008.

This would not be the first time KKR has taken minority stakes in financial firms. In 1991, the company invested $283 million to help Fleet/Norstar Financial Group buy the collapsed Bank of New England. KKR ended up with a minority stake in Fleet/Norstar.

In 2008, KKR took a $1.25 billion stake in Legg Mason (NYSE: LM), a Baltimore-based money manager, in the form of convertible notes.