ABN Amro sticks to Barclays deal

26th April 2007, Comments 0 comments

26 April 2007, AMSTERDAM - ABN Amro has refused to give in to the most important demand from the trio of banks that brought out a counteroffer on ABN Amro yesterday. It will not back down on its plan to sell US subsidiary LaSalle, the Financieele Dagblad reports.

26 April 2007

AMSTERDAM - ABN Amro has refused to give in to the most important demand from the trio of banks that brought out a counteroffer on ABN Amro yesterday. It will not back down on its plan to sell US subsidiary LaSalle, the Financieele Dagblad reports.

ABN Amro said this to Royal Bank of Scotland (RBS), Fortis and Banco Santander on Wednesday. The consortium will be given access to the same financial information Barclays saw before making its bid on Monday.

The consortium announced a counter-bid on Wednesday worth EUR 72.2 billion, with certain conditions. That led to a telephone discussion later during the day among the relevant executives.

The trio is prepared to put down EUR 39 a share, more than the EUR 36.25 Barclays is offering. While Barclays is paying entirely in its own shares, the consortium will pay 70 percent of the takeover sum in cash and the remaining 30 percent in RBS shares.

ABN Amro director Huibert Boumeester, the chief negotiator for the bank alongside CEO Rijkman Groenink, said before the telephone conversation that ABN has questions about the offer. "There is the 50-billion euro question [the cash share of the bid, ed.]: how are they going to finance that? We want to know how serious they are."

Boumeester denied that LaSalle could still be part of a deal with the consortium: "That's impossible. We've sold that."

Goodwin denied the possibility that RBS might make a bid on its own: "The consortium wants to bid on ABN Amro as a whole and we remain a member of the consortium."

The Dutch Investors' Association (VEB) welcomed the bid from the RBS-led consortium. The VEB thinks that ABN Amro should put the sale of LaSalle up for a vote at the shareholders' meeting. Otherwise they will take the matter to the Enterprise Chamber of the court.

[Copyright Expatica News 2007]

Subject: Dutch news

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