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ABN buy ING's US unit
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January 30, 2001: 6:11 a.m. ET
Dutch bank buys rival's US investment banking business for $275 million
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LONDON (CNNfn) - Dutch bank ABN Amro Holdings Tuesday agreed to buy rival ING Groep's U.S. investment banking unit for $275 million.
ABN wants to build up its securities business, while ING is retrenching a division that it has struggled with since buying Barings in 1995 and Furman Selz in 1996.
ING also plans to cut 1,000 jobs with half of those from its London operation, 200 in the United States and 300 in the rest of the world. However, ING said it is committed to investment banking in Europe, Asia and Latin America.
ING acquired Barings for a pound as well as massive debt, after the British bank was brought to its knees by massive trading losses of rogue trader Nick Leeson in Singapore.
ABN Amro plans to integrate ING Barings into its European division and will take a charge of $450 million for the job losses. It expects the cuts to result in cost savings of about 500 million euros ($458 million) a year.
Still, ING received slightly more than analysts had predicted for the sale of its U.S. business as its investment bank racked up poor results in the closing months of last year.
ABN AMRO expects its prime brokerage, equities and corporate finance business in the U.S. to break even in 2001 after the integration of the ING Barings U.S. activities.
--from staff and wire reports 
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