(Article updated with Capital One's winning bid for ING Direct)NEW YORK ( TheStreet) -- Capital One Financial ( COF - Get Report) has won a bid for ING Groep's online banking unit, the Wall Street Journal reported Thursday, citing people familiar with the matter. Capital One will pay $6.2 billion dollars in cash and $2.8 billion in stock for ING Direct USA, according to the report, giving ING a 10% stake. A Capital One spokesperson could not be reached for comment. Early reports of the deal
But timing might be everything for such a strategy to work according to Taiano. "As a standalone, HSBC
credit card portfolio makes more sense than ING," he said. "There is the risk that Capital One could win ING, but not win HSBC." The size of the deals is also a source of concern. According to Taiano, if Capital One wins both deals, its assets could potentially increase by 50%, assuming it sells off some of ING's assets such as its mortgage business. ING has $82 billion in deposits and 7 million customers. That could mean it would have to raise more capital. The bank's capital ratios are "just about adequate", the analyst says. According to the latest report, Capital One is expected to raise $2 billion before the deal closes, expected around the end of end of the year. Arnold of RBC Capital also feels Capital One is being too ambitious in its acquisition strategy and is particularly skeptical of the ING deal. "It is sizeable and their capital ratios are not robust. They will have to do an equity raise. The deposits are less sticky than what they have on the books. If ING's customers are less inclined to stick with Capital One, they could lose deposits quickly. It would take a lot of time to digest a deal of that size," he said. The analyst believes the HSBC deal might help offset the decline in credit card portfolios, but said would prefer to see deals more along the lines of its Kohl's credit card deal. "I would rather see them work through their current credit issues than take on such size." --Written by Shanthi Bharatwaj in New York >To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.