ING BOOSTS US PRESENCE WITH $6.1BN DEAL FOR RELIASTAR

ING is strengthening its operations in the US market through a deal to acquire Minnesota-based insurance group ReliaStar Financial Corp for $5.1bn in cash plus the assumption of $1bn in debt. The $54-a-share price tag represented a 75% premium over ReliaStar’s share closing last Thursday and a 25% premium over its closing on Friday when speculation of the takeover fuelled the market. The agreement will give ING control of the eighth-largest publicly traded US life assurer, with $3.04bn in annual revenues and $38.4bn in assets under management. ReliaStar is to retain its current management and operate as part of ING Americas. With successful integration of ReliaStar, ING expects to cut annual costs by up to $65m by 2005. ING made its first major move into the US market in 1997 with the $2.2bn acquisition of Equitable of Iowa and the $600m purchase of investment firm Furman Selz. ING said that ReliaStar would not be its last acquisition in the US market.