ABN AMRO completes LaSalle sale

2nd October 2007, Comments 0 comments

2 October 2007, AMSTERDAM (AFP) - Dutch bank ABN AMRO, in the midst of a titanic takeover battle, said on Monday that it had finalised the sale of its US subsidiary LaSalle to Bank of America for USD 21 billion (EUR 14.8 billion). ABN AMRO is at the centre of the biggest takeover battle in the banking industry after a three-bank consortium led by Royal Bank of Scotland sought to outgun an offer from British group Barclays earlier this year.

2 October 2007

AMSTERDAM (AFP) - Dutch bank ABN AMRO, in the midst of a titanic takeover battle, said on Monday that it had finalised the sale of its US subsidiary LaSalle to Bank of America for USD 21 billion (EUR 14.8 billion).
 
ABN AMRO is at the centre of the biggest takeover battle in the banking industry after a three-bank consortium led by Royal Bank of Scotland sought to outgun an offer from British group Barclays earlier this year.

The sale of LaSalle was a key plank of the sale to Barclays, which was initially backed by the ABN AMRO management.

The consortium, which also includes Belgian-Dutch Fortis and Spain's Banco Santander, has offered EUR 71 billion, mainly in cash, while Barclays has bid about EUR 60 billion, mainly in shares.

While Barclays wants to keep ABN AMRO together, apart from LaSalle, the three-bank consortium wants to take the bank apart.

Barclays' offer expires on Thursday, while that of the consortium runs until Friday.

Through the acquisition of LaSalle, Bank of America, the United States' second-biggest bank, will strengthen its position, particularly in the Chicago region.

The US Federal Reserve Bank gave the green light to the deal on 14 September.
 
Last week the consortium held 8 percent of ABN AMRO's capital, according to an article in The Financial Times.

The chief executive of ABN AMRO Rijkman Groenink said the Barclay's offer will "probably not" succeed as it is lower than that of the consortium.

[Copyright AFP 2007]

Subject: Dutch news

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