Dutch state to halve ABN Amro stake to 10.5% in latest selldown

Oct 7 (Reuters) - ABN Amro said the Dutch government would reduce its stake in the bank to 10.5% from 20.7% by selling certificates of shares, under a fifth trading plan aimed at further cutting the state's holding.

The Dutch state, through investment vehicle NLFI, has gradually reduced its stake in ABN Amro since its 2015 listing in Amsterdam, following its nationalisation during the 2008 financial crisis.

The lender said its relationship agreement with NLFI, which grants the state certain information rights, would be terminated once the government's stake falls below 10%.

The latest trading plan will be executed through open-market sales and is to remain in place until the maximum number of depositary receipts has been sold. The previous programme ran for almost a year.

Investors buy depositary receipts issued by a private foundation that holds ABN Amro's underlying shares and grants holders substantially the same economic rights as ordinary shareholders.

The structure was introduced as part of the bank's privatisation and serves as a takeover defence mechanism, as it allows the foundation to temporarily restrict voting rights in the event of a hostile bid.

CEO Marguerite Bérard previously said she would welcome ABN Amro's full return to private ownership, while stressing she intended to build the bank on its own strengths.

Contacted by Reuters, NLFI declined to comment on the timing of any future stake reductions or whether a subsequent sale could involve a private buyer rather than a market transaction.

(Reporting by Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak)