Fannie Mae to sell $2 billion bills on Wednesday

NEW YORK, Sept 8 (Reuters) - On its first bill sale announcement since the U.S. government announced it was taking control of Fannie Mae (FNM.N), the U.S. home funding company said on Monday it plans to sell $1 billion of three-month benchmark bills due Dec. 10, 2008, and $1 billion of six-month bills due March 11, 2009, on Wednesday in a Dutch auction.

In such uniform price auctions, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.

Bids will be accepted from authorized dealers from 9:00 a.m. (1300 GMT), until 9:45 a.m. (1345 GMT).

Settlement is Sept. 10-11.

The U.S. announced this weekend that it was taking Fannie Mae and its peer Freddie Mac (FRE.N) under government control, in what could prove to be the biggest financial bailout in U.S. history. The agencies back about half the country's $12 trillion in outstanding home mortgages. (Reporting by Rodrigo Campos; Editing by James Dalgleish)