The Dutch government decided yesterday to start selling state-owned bank ABN Amro seven years after it was nationalised during the financial crisis.

'A first part will be sold from the fourth quarter,' Finance Minister Jeroen Dijsselbloem said after the cabinet meeting.

The first tranche will be of 20-30 per cent of the bank and the entire flotation will take several years, 'meaning the state remains a shareholder for several years', said Dijsselbloem.

ABN Amro, the Netherlands' third largest bank after ING and Rabobank, is worth around 15 billion euros ($17 billion).

'Calm and trust have returned,' said Prime Minister Mark Rutte, adding that markets were now sufficiently stable. 'There is enough interest and the bank is ready.'

The government also decided to implement measures to counter the possibility of a hostile takeover.

ABN Amro, which traces its roots back to the 19th century, was listed on the Amsterdam Stock Exchange before being bought in 2007 by a consortium consisting of Spanish Santander, the Royal Bank of Scotland and Belgian-Dutch Fortis. The 71bn euro deal ultimately proved a calamity for its buyers as the global financial crisis peaked.

Fortis was dismantled during the 2008 banking crisis to avoid bankruptcy and its Dutch activities, including its share in ABN Amro, were bailed out by the Dutch government, which then merged it back into ABN Amro Bank, and it has held the reins ever since.-Reuters