UPDATE: Amsterdam Court Sets DSB Deadline For Last Chance
October 15 2009 - 10:46AM
Dow Jones News
Time is running out for troubled Dutch lender DSB Bank NV, after
an Amsterdam court Thursday ordered it to find a buyer by Friday or
face being declared bankrupt, but the bank's owner said he remains
confident of keeping the operation alive.
The court told unlisted DSB Bank, which was placed into
administration Monday by the Dutch Central bank after a run on
deposits, that it has until 1000 GMT Friday to talk with "major
banks" to find a buyer.
If no "realistic chance" for a takeover of the privately owned
Dutch savings and mortgage bank can be worked out, DSB will be
declared bankrupt, the court said. If a takeover can be worked out,
the case will be discussed in a closed court session later Friday,
it added.
DSB owner Dirk Scheringa told reporters it was still possible to
find a solution to the company crisis. "The chance for a positive
solution is 60%," he said, adding that he sees more takeover
options for his bank than just the five major Dutch banks that have
been mentioned up to now.
Scheringa said he will discuss his ideas later Thursday with
Finance Minister Wouter Bos, without further elaborating. A
spokeswoman for the minister confirmed that Bos and Scheringa would
meet.
Scheringa indicated he was prepared to give up his position at
the bank if that would help save it. "The interests of our
employees and customers are most important," he said.
Two potential buyers, SNS Reaal (SR.AE) and Fortis Bank
Netherlands, Thursday reiterated that they weren't currently
considering a takeover of DSB.
"We discussed and looked into the option seriously last week and
decided that it wasn't viable," Fortis spokesman Arien Bikker said.
"We have no new information that has changed our view, but of
course we are always available to listen to them."
SNS Reaal said it isn't discussing a deal with administrators.
"We are not in talks to buy DSB Bank or parts of it," spokeswoman
Erna van der Neut said.
Over the past weekend, talks on a rescue operation for DSB
between the Dutch Central Bank, the Finance Ministry and five major
Dutch banks - ING Groep NV (ING), SNS Reaal, Rabobank, ABN Amro and
Fortis Bank Netherlands - failed "owing to uncertainty surrounding
possible claims on DSB," the Central Bank said.
The DSB seizure was described by the government as unconnected
with the global financial crisis. However, it dealt a further blow
to a financial system hit hard by a credit crunch that resulted in
the nationalization of former financial giant Fortis and in
multi-billion-euro state-aid plans for ING and insurer Aegon NV
(AEG).
Rabobank and ING declined to comment. ABM Amro didn't
immediately respond to requests for comment.
DSB Bank depositors are currently unable to access their cash.
Under the Dutch deposit-guarantee system, accounts of up to
EUR100,000 are guaranteed by DNB through a plan funded jointly by
the Dutch banks. No time frame was given by the authorities as to
when clients might be able to regain access to their deposits.
The Central Bank said DSB clients can open accounts with other
banks without going through the usual weeks-long application
process.
DSB Bank had reported assets of EUR8 billion.
-By Bart Koster; Dow Jones Newswires; +31 20 571 5201;
bart.koster@dowjones.com