* No alternative expected to ABN-D.Bank deal by deadline
* Kroes calls on banks to restructure, "slim down"
* Hopes for end-2009 resolution on state guarantees for ING
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By Gilbert Kreijger
THE HAGUE, Oct 13 (Reuters) - The Dutch government is unlikely to find an alternative to selling its ABN AMRO assets to Deutsche Bank before the Oct. 19 deadline, European Competition Commissioner Neelie Kroes said on Tuesday.
ABN and Fortis Bank Nederland are required to sell some of their assets, including commercial bank HBU, before the Dutch government is allowed to integrate them. However, a final deal to sell them to Deutsche Bank AG has been elusive.
Fortis holding struck a deal in July 2008 to sell the assets to Deutsche Bank, but when the Dutch government nationalised Fortis' local operations in October 2008, it inherited the deal, under which the government stands to lose 300 million euros.
"Personally, I think the chance for an alternative to the HBU (deal) is very, very low," Kroes told Dutch Parliament.
Deutsche Bank declined to comment on Kroes's comments.
Kroes indicated that an alternative remedy would be acceptable if it ensured competition, but it was unlikely.
"The deal at the time concerned HBU and related assets, which was an outcome of those parties. We have also said there could be other assets sold but it has to comply with our conditions for guaranteeing competition," Kroes said.
Talks broke down last month before an Oct. 2 deadline but the EU granted an extension up to Oct. 19, citing the "imminent" sale of HBU and the other assets that Deutsche Bank was originally slated to buy.
The Dutch government now says it is once again talking to Deutsche Bank about a deal, but sources familiar with Deutsche Bank's thinking have cautioned that a deal was by no means certain.
SLIM DOWN
Kroes also told Dutch lawmakers that banks receiving state aid will have to restructure, referring to the banking sector in general, most often by slimming down operations.
"Banks which received substantial state aid will have to restructure. Restructuring is necessary, usually meaning trimming down operations," Kroes said.
"There is no free lunch."
Kroes also weighed in on the EU Commission's review of a loan porfolio guarantee deal between ING and the Dutch state, in which the commission said that Dutch government may have paid too much to help ING.
ING and the Dutch state struck a deal in January for the government to guarantee 80 percent of a 27.7 billion euro portfolio of so-called Alt-A and subprime residential mortgage-backed securities.
Kroes said she hoped that the review of the state guarantees for ING would be resolved "positively" by the end of 2009, but cautioned that "some banks cannot be treated more generously than others."
"Every form of state aid has to be based on the same rules. All rules are the same regardless of nationality or size," Kroes said.
"In the execution, you can take into account specific circumstances, but if some banks are in more generous schemes, there will have to be consequences"
The Dutch government is due to receive 80 percent of the cash generated from the portfolio, which it took on at a 10 percent discount to par value. (Writing by Reed Stevenson; editing by Karen Foster)