ABN Amro committee weighs takeover bids

30th May 2007, Comments 0 comments

30 May 2007, AMSTERDAM (AP) - ABN Amro, the Dutch bank at the centre of the largest takeover battle in the financial industry, said Wednesday it has formed a special supervisory board committee to weigh rival takeover bids from Barclays PLC and a consortium of banks led by Royal Bank of Scotland PLC.

30 May 2007

AMSTERDAM (AP) - ABN Amro, the Dutch bank at the centre of the largest takeover battle in the financial industry, said Wednesday it has formed a special supervisory board committee to weigh rival takeover bids from Barclays PLC and a consortium of banks led by Royal Bank of Scotland PLC.

The RBS offer of EUR 71.1 billion (USD 95.5 billion), or EUR 38.40 (USD 51.59) per ABN Amro Holding NV share, is about 10 percent higher than Barclays' bid.

However, it is contingent on the failure of a separate deal ABN has struck to sell its U.S. arm LaSalle Bank to Bank of America for USD 21 billion (EUR 15.5 billion) - and that is a matter in the hands of two courts on opposite sides of the Atlantic.

The three-member committee, led by Chairman Arthur Martinez, will have the difficult task of arbitrating between the sometimes divergent interests of shareholders, suitors, employees, financial advisers, lawyers, and ABN's own management board.

Although the committee places ABN CEO Rijkman Groenink somewhat on the sidelines as the bank is being torn apart in the tug-of-war, "the managing board of ABN Amro welcomes the initiative...and believes (it) to be in the interest of the bank and all stakeholders," it said in a statement.

[Copyright AP 2007]

Subject: Dutch news

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