Financial Bailouts Keep Coming, From Competitors (AIG, PRU, RBS, ING)

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There are many new initiatives for "taking stakes" and "financing packages" this morning.  Most of these seem to be coming from actual competitors rather than from our government, although that isn’t the case in the continental European scenario.

American international Group, Inc. (NYSE: AIG) is indicated almost 10%higher on preliminary weekend reports that Prudential may acquire a 20%stake in the insurance operator and then on later reports thatPrudential was interested in some of AIG’s Asian operation units.

Royal Bank of Scotland Group plc (NYSE: RBS) ADR’s are also seeingroughly a 10% bounce.  There were weekend reports that CVC and SwissReare putting together bids for RBS’s insurance operation in a deal whichmight value the majority stake or full stake roughly $10 billion.  ItsADR’s closed at $1.18 and are indicated at $1.32 right before the open,while the 52-week range is $1.07 to $11.50.

ADR’s of ING Groep NV (NYSE: ING) are trading up after the Dutchgovernment gave the company a 10 billion Euro cash injection.  Thecompany also sold its Taiwanese unit for roughly 500 million Euros. Based upon this move, Goldman Sachs has raised its prior "sell rating" to a "Neutral."  Shares are up 13% at $12.07 and its 52-week trading range is $9.89 to$45.21.

Jon C. Ogg
October 20, 2008