UPDATE 1-DEALTALK-Dutch may eye Fortis NL unit sale-sources

(For more Reuters DEALTALKS, click on [DEALTALK/])

* FBN commercial unit could be eyed for sale

* Goal would be to replace ABN asset sale remedy at EU

(Adds EU competition comments)

By Ben Berkowitz and Djaja Ottenhof

AMSTERDAM, Sept 23 (Reuters) - As the Dutch finance ministry looks for an asset-sale plan that will satisfy the European Commission and allow it to merge two nationalised banks, one unit that may be coming into view is Fortis Bank Nederland's commercial banking arm.

Two sources well-connected in local banking circles told Reuters and ANP this week that the government could be considering selling the commercial banking unit as a way to meet the EU's mandates and clear the way for a merger of ABN AMRO and Fortis Bank Nederland.

The finance ministry declined to comment. It has reiterated in recent days, though, that it is looking at all ABN and Fortis assets as it tries to craft a solution. Fortis Bank Nederland declined to comment.

The possible sale of the commercial banking unit was raised earlier this year by ABN AMRO's intended chief executive, Gerrit Zalm. In February Zalm, a former Dutch finance minister, told a Dutch daily the bank was looking at the issue.

The Fortis workers' council has also suggested the sale of the commercial banking unit as a possible option as part of a broader restructuring of the company that would also include the sale of the retail banking operation.

Fortis Bank Nederland's commercial unit serves medium- and large-sized enterprises with revenues between 2.5 million and 250 million euros. It targets Dutch companies with an international presence via a network of 23 business centres and four regional offices.

It is not clear if a sale of the Fortis commercial unit would be sufficient for the EU. European Competition Commissioner Neelie Kroes told reporters on Tuesday it was too soon to say whether the Dutch government could come up with an alternative asset sale after the first one collapsed.

But her spokesman told Dutch press agency ANP on Wednesday that "in theory" it was possible such an alternative asset sale could be allowed, though it would need a fresh EU review.

REPLACE FAILED ABN DEAL

Last week, Deutsche Bank (DBKGn.DE) backed out of talks to buy a package of assets from ABN AMRO. [ABNNV.UL] [ID:nLH635147]

The news threw a huge roadblock in the Dutch government's plans for ABN, which it took over last October in a 16.8 billion euro deal when it nationalised Fortis's local operations.

When a group including Fortis FOR.BR struck a deal to buy ABN AMRO Group and carve it up in 2007, the EU ordered Fortis to sell a bundle of Dutch ABN AMRO assets to address competition concerns. The bundle included commercial bank HBU, 13 advisory branches and two corporate client units.

Without that asset sale, the EU will not allow ABN AMRO and the also-nationalised Fortis Bank Nederland to be merged, as the government has planned. It had intended to kick off the merger in the second half of 2010, ahead of a hoped-for IPO some time in 2011.

Analysts have said that it would likely be easier for the government to sell off pieces of Fortis Bank Nederland than it would from ABN AMRO, and that in fact the government would probably prefer such a solution.

Once the combination with ABN is completed, Fortis Bank Nederland's commercial unit is seen as being part of the commercial and merchant banking business line of the new ABN AMRO Bank NV. (Editing by David Cowell)