Dutch state holding chooses banks for ABN AMRO sale

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By Thomas Escritt

AMSTERDAM, July 24 (Reuters) - Deutsche Bank (Xetra: 514000 - news) 's London office and Morgan Stanley International will help Dutch bank ABN Amro (IPO-ABN.AS) to coordinate its share sale, the state agency overseeing the deal said on Friday.

No timetable has yet been set for the flotation of the publicly owned bank which was nationalised seven years ago, NL Financial Investments (NLFI) said in a statement.

"The final timetable will depend on the state of the financial markets, amongst other things," it said.

The bank, rescued by the state in 2008, is expected to list 25 percent of its shares in an IPO this year or in 2016 that will value it at around 15.6 billion euros ($17.1 billion).

NLFI, which handles the Dutch state's holdings in financial institutions nationalised in bailouts following the 2008 financial crisis, said the banks had been chosen for their expertise and on cost grounds.

It said the deal with the banks "comfortably" met its stipulation that they should earn no more than 1 percent of the proceeds from the first tranche of the IPO. The agency said it would now start selecting bookrunner and co-lead manager banks.

In February, the agency published an initial selection of 26 banks eligible to participate in the IPO, including the 10 largest investment banks globally by assets, as well as the three biggest Dutch banks -- ABN, ING and Rabobank .

The sale was due to be announced in March, but a public outcry over proposals to pay the bank's top managers an extra 100,000 euros a year prompted finance minister Jeroen Dijsselbloem to postpone it. ($1 = 0.9131 euros) (Reporting By Thomas Escritt and Yoruk Bahceli; Editing by David Evans and Keith Weir)