"ING ... does not intend to make an offer to acquire ABN Amro Netherlands from Fortis,'' the bank said.
"ING has examined the situation closely and carefully. We are mindful of the interests of all stakeholders, but recognise that the ultimate responsibility is to our shareholders.''
Fortis shares plummeted a record 23.55 per cent overnight, leading the Amsterdam stock exchange in an 8.75 per cent decline -- reportedly its biggest in 21 years.
The banking and insurance group turned morning gains into another record loss despite Sunday's announcement of its part nationalisation in a three-nation rescue plan.
It ended the day at under four euros a share as markets reacted coldly to the announcement by Belgium, the Netherlands and Luxembourg of an €11.2 billion($20.1 billion) plan to keep the US-driven financial crisis from claiming another victim in Europe.
Fortis' woes have been blamed party on its buying into one-time rival ABN Amro in October last year.
It had contributed €24 billion to the purchase with its partners, the Royal Bank of Scotland and Spanish bank Santander.
The world's biggest banking takeover, for a total sum of €71 billion, occured just months before the effects of the US subprime credit crisis started to be felt.
At the time it launched the bid for ABN Amro last April, Fortis' shares were worth €36. The group is now worth about &euro13 billion less.
ING lost 18.19 per cent on the Amsterdam stock exchange yesterday, based on what at least one analyst believed to be speculation of its planned purchase of ABN Amro for €10 billion.
"It seems the market might think it would not be a good idea,'' markets specialist Adrian van Tiggelen told AFP earlier.
ING said it was committed to "a disciplined approach'' in acquisitions, "especially in the current extraordinary market circumstances.
"After careful consideration ING concluded that a transaction would not meet its financial requirements.''
ING is a Netherlands-based banking, investment and insurance institution with over 85 million clients in more than 50 countries.
The US House of Representatives dramatically rejected a $US700billion ($840 billion) Wall Street bailout after European markets closed yesterday.
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