* Talks with funds, institutional investors -paper
* Looking at several scenarios, no decision yet -SNS Reaal
AMSTERDAM Jan 25 Troubled Dutch bank and
insurance group SNS Reaal is in talks with cash-rich
domestic and foreign investors about a capital injection of 1
billion to 1.5 billion euros ($1.3-2 billion), a paper said.
SNS Reaal, which received 750 million euros of state aid in
2008 at the height of the financial crisis, is widely expected
to require a second state bailout because of losses at its
property unit and is planning to announce a restructuring plan
by next month.
SNS Reaal is talking to investment funds as well as a few
institutional investors from inside and outside the European
Union, Dutch financial daily Het Financieele Dagblad reported on
Friday, citing unnamed sources in the financial sector.
An SNS Reaal spokesman said: "We are investigating several
scenarios. We have not yet taken a decision. We hope to make
statements at a later time."
Talks have already been taking place for a few months, the
paper said, citing the sources.
Political sources in The Hague, where the Dutch government
and parliament are located, have taken into account the
likelihood that the Dutch state will nationalise SNS Reaal
within a few days, the paper said.
Dutch daily De Telegraf reported on Wednesday that the
nationalisation of SNS Reaal was a "serious option", which may
cost the government several billion euros.
All aid plans call for the troubled property finance
operations, which have recorded more than 1.3 billion euros of
net losses since 2009, to be set apart in a so-called "bad
bank", which would be wound down in ten to 15 years, Het
Financieele Dagblad said.
A capital injection of 1 billion euros would mean a change
of ownership because SNS Reaal's market valuation is around 200
million euros, the paper said.
($1 = 0.7477 euros)
(Reporting by Gilbert Kreijger; Editing by Helen