“ABN asks guarantees from consortium”
20 July 2007, AMSTERDAM – ABN AMRO has called on the bank consortium to ensure that their bid will not result in considerably higher costs than Barclays’ plan under which the bank will not be split up, according to the Financial Times on the basis of sources on Friday.
20 July 2007
AMSTERDAM – ABN AMRO has called on the bank consortium to ensure that their bid will not result in considerably higher costs than Barclays’ plan under which the bank will not be split up, according to the Financial Times on the basis of sources on Friday.
On Wednesday ABN AMRO announced that it would enter into talks with the consortium made up of the Royal Bank of Scotland, Fortis and Santander. The consortium wants to split up ABN AMRO.
At the top of items to be discussed is that ANB AMRO wants more details about superfluous staff in the Netherlands.
In addition the banks wants more details about Dutch staff in departments which have overlapping activities in the different banks. This involves positions such as investor relations and risk management.
The consortium is expected to make a final bid on Monday. Barclays will make its bid a little later, as the bank has asked permission to postpone its definitive bid. The British financial regulator FSA has already approved Barclays bid.
ABN AMRO might recommend the consortium’s bid on Monday, although the bank has up to now expressed a preference for a merger with Barclays.
The consortium’s bid is higher than that of Barclays. The British bank has various possibilities to make its bid more attractive. The bank can issue so-called “quasi equity” but it can also seek a strategic partner – for instance, a party in the Middle East.
[Copyright Expatica News 2007]
Subject: Dutch news