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SNS Reaal says no longer pursuing smaller rivals

Tue Jun 23, 2009 8:27am EDT

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* Confirms approaches last year to Van Lanschot, Friesland

* Says approaches were only preliminary

* Van Lanschot, Friesland staying independent

By Ben Berkowitz

AMSTERDAM, June 23 (Reuters) - Dutch bancassurer SNS Reaal (SR.AS) is no longer interested in pursuing deals with smaller rivals Van Lanschot (VLAN.AS) and Friesland Bank [FRIBK.UL] after approaches last year, a spokeswoman said on Tuesday.

The spokeswoman confirmed SNS approached both companies last year, but said that both targets preferred to remain independent.

"It was never serious talks," she said, adding that the company is sticking to comments it made in May that it is not interested in making acquisitions this year.

Former SNS Chief Executive Sjoerd van Keulen told Dutch newspaper Het Financieele Dagblad he had made attempts last year to strike up deals with both banks.

A spokesman for Van Lanschot, a top-five Dutch private bank, said the firm was sticking to its long-stated intention to remain independent.

"We've always stated that we are an independent bank and we're sticking to that," the spokesman said.

Van Lanschot, which caters to clients who have net assets of more than 5 million euros ($6.9 million), has a history going back to the early 18th century.

A spokeswoman for Friesland, which calls itself the seventh-largest general bank in the Netherlands, said it was always open to talks with other institutions but that did not necessarily have to lead to any deal and none was pending.

Friesland, which dates to 1913, started as a cooperative catering to the dairy industry.

In mid-May, SNS said it was not looking for acquisitions, preferring to focus on its core businesses and navigating the still-difficult financial markets.

The company also faces the prospect of eventually repaying 750 million euros in aid it received from the Dutch state last November. Among other options, the company has discussed the idea of a rights issue, which would require the permission of the Dutch central bank (DNB).

($1=.7216 Euro)

(Editing by Elaine Hardcastle)



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