BRUSSELS, Nov 7 (Reuters) - Belgian banking and insurance group KBC will have to shrink its balance sheet by about 25 percent over the course of several years in an EU-ordered restructuring, daily De Tijd said on Saturday.
KBC is one of many banks which have submitted restructuring plans to the European Commission, the EU's executive arm, and will be asked to divest certain assets in return for receiving state aid.
Citing politicians familiar with the talks, De Tijd said the bank was close to a deal with the European Commission, and that a split of the group into a separate banking and insurance arm -- as asked of Dutch peer ING -- was not part of the plan.
It was likely that the group would likely sell its private banking unit KBL European Private Bankers, with JP Morgan already gauging buyer interest.
KBC would probably also divest its insurance unit Fidea and its Belgian retail bank Centea, De Tijd said, as well as non-core activities in eastern Europe and Absolut Bank in Russia.
(Reporting by Antonia van de Velde; editing by Chris Pizzey) Keywords: KBC/ (antonia.vandevelde@thomsonreuters.com; Reuters Messaging: antonia.vandevelde.thomsonreuters.com@reuters.net; +32 2 287 6810, fax +32 2 230 7710) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
KBC is one of many banks which have submitted restructuring plans to the European Commission, the EU's executive arm, and will be asked to divest certain assets in return for receiving state aid.
Citing politicians familiar with the talks, De Tijd said the bank was close to a deal with the European Commission, and that a split of the group into a separate banking and insurance arm -- as asked of Dutch peer ING -- was not part of the plan.
It was likely that the group would likely sell its private banking unit KBL European Private Bankers, with JP Morgan already gauging buyer interest.
KBC would probably also divest its insurance unit Fidea and its Belgian retail bank Centea, De Tijd said, as well as non-core activities in eastern Europe and Absolut Bank in Russia.
(Reporting by Antonia van de Velde; editing by Chris Pizzey) Keywords: KBC/ (antonia.vandevelde@thomsonreuters.com; Reuters Messaging: antonia.vandevelde.thomsonreuters.com@reuters.net; +32 2 287 6810, fax +32 2 230 7710) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
