Consortium makes bid on ABN Amro
29 May 2007, AMSTERDAM – The battle over ABN Amro has entered a new phase. The banking consortium of Royal Bank of Scotland, Fortis and Santander has brought out an official bid on the Dutch bank.
29 May 2007
AMSTERDAM – The battle over ABN Amro has entered a new phase. The banking consortium of Royal Bank of Scotland, Fortis and Santander has brought out an official bid on the Dutch bank.
It had already brought out an "indicative" bid. Regulations stipulate that a next step had to be taken today because the initial bid was brought out one month ago. The consortium has now made an official bid on ABN Amro worth EUR 71.1 billion.
This amounts to EUR 38.40 a share. The three want to pay 79 percent of the takeover amount in cash. The banks have said that their bid depends partly on a shareholder vote regarding the sale of US subsidiary LaSalle. ABN Amro has agreed to sell this division to Bank of America, but a court case is still pending regarding the transaction.
The consortium says its bid is worth 14 percent more than that offered by British bank Barclays. Barclays has bid EUR 68 billion, but that offer is only worth EUR 63 million now since the bid was made in shares and Barclays' share price has fallen over the past few weeks.
Of the total takeover amount RBS will pay EUR 27.2 billion, Fortis EUR 24 billion, and Santander EUR 19.9 billion. The three banks expect the takeover of ABN Amro to generate cost advantages of EUR 4.23 billion by the end of 2010.
[Copyright Expatica News 2007]
Subject: Dutch news