ABN Amro and Barclays merger agreed

23rd April 2007, Comments 0 comments

23 April 2007, AMSTERDAM – ABN Amro and Barclays have agreed on a takeover via an exchange of shares.

23 April 2007

AMSTERDAM – ABN Amro and Barclays have agreed on a takeover via an exchange of shares.

The British bank is offering 3.225 Barclay shares per ABN Amro share, valuing each ABN Amro share at EUR 36.25 and the bank as a whole at EUR 67 billion. This is the largest takeover ever in the financial sector.

The new combination, to be called Barclays PLC, will sell American LaSalle Bank to the Bank of America for USD 21 billion. This sale will take place as planned even if the takeover should unexpectedly not go through.

The takeover and sale of LaSalle are expected to be concluded in the fourth quarter of this year. The merger will also affect the personnel at both ABN Amro and Barclays. About 10,800 jobs will be moved to low-wage countries and 12,800 jobs will be scrapped.

ABN Amro head Rijkman Groenink said the bid from Barclays was "in the best interest of shareholders." He says the British bank is the best partner for ABN Amro.

Broker Rob Koenders of Harmony Assets Management said in an initial reaction that the "game is not over yet." Investors are counting on a higher bid. ABN Amro's share opened 1.4 percent higher today on the Euronext stock market in Amsterdam.

[Copyright Expatica News 2007]

Subject: Dutch news

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