Banks bring out higher bid on LaSalle
7 May 2007, AMSTERDAM – The consortium of Fortis, Royal Bank of Scotland and Santander brought out a bid of USD 24.5 billion on ABN Amro subsidiary LaSalle this weekend, the Financieele Dagblad reports.
7 May 2007
AMSTERDAM – The consortium of Fortis, Royal Bank of Scotland and Santander brought out a bid of USD 24.5 billion on ABN Amro subsidiary LaSalle this weekend, the Financieele Dagblad reports.
The consortium has also made a proposal to ABN Amro to discuss a bid that values the bank as a whole at EUR 39 per share, including a EUR 0.60 dividend.
This was announced on Monday morning. The deadline for the "go shop" period during which ABN Amro was allowed to accept competing bids for LaSalle expired this morning at 6 am Dutch time.
The consortium's bid on LaSalle beats the USD 21 billion that ABN Amro had agreed with Bank of America.
Fortis, Royal Bank of Scotland and Santander will pay USD 24.5 billion for LaSalle on condition that the consortium gains full control of ABN Amro and all claims regarding LaSalle are settled.
The proposed offer for ABN Amro as a whole comes to EUR 39 a share, 70 percent in cash, 30 percent in shares, with dividend.
ABN Amro had its doubts on Sunday whether the conditional offer from the consortium could be considered superior to Bank of America's bid.
A very uncertain situation will arise if the bid is not deemed superior. A court ruled last Thursday that shareholders must be consulted on the sale of LaSalle. The consortium will only be able to buy LaSalle if shareholders reject the deal with Bank of America. At the same time this would almost certainly lead to staggering financial claims for breach of contract.
[Copyright Expatica News 2007]
Subject: Dutch news