ABN Amro rejects consortium bid

7th May 2007, Comments 0 comments

7 May 2007, AMSTERDAM – ABN Amro has rejected a bid of USD 24.5 billion (EUR 18 billion) for US subsidiary LaSalle from the consortium comprised of Royal Bank of Scotland (RBS), Santander and Fortis. ABN Amro says the bid is not superior to the previous bid of USD 21 million (EUR 15.5 billion) from Bank of America.

7 May 2007

AMSTERDAM – ABN Amro has rejected a bid of USD 24.5 billion (EUR 18 billion) for US subsidiary LaSalle from the consortium comprised of Royal Bank of Scotland (RBS), Santander and Fortis. ABN Amro says the bid is not superior to the previous bid of USD 21 million (EUR 15.5 billion) from Bank of America.

The bank will call a special shareholders' meeting for a vote on the bid but has not yet announced a date, the Financieele Dagblad reports.

ABN Amro has rejected the bid because of the conditions set by the consortium. The trio of banks is only willing to follow through on the proposed bid on LaSalle if it is given the opportunity to take over ABN Amro as a whole. ABN Amro says that the consortium has repeatedly refused to regard the sale of LaSalle as separate from the sale of ABN in its entirety.

Investors responded with disappointment on Monday. ABN Amro's share price fell 2.43 percent.
    
ABN Amro thinks that both the financing and legal and fiscal matters regarding the consortium's proposal are surrounded with uncertainty and risk.

The consortium says that its proposed bid is in fact superior to that from Bank of America. "The price proposed for LaSalle Bank in particular was considerably higher than the bid from Bank of America," the consortium said.

[Copyright Expatica News 2007]

Subject: Dutch news

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