Delay in ABN Amro merger

13th April 2007, Comments 0 comments

13 April 2007, AMSTERDAM – A merger between ABN Amro and British Barclays could still be more than a week away. The banks, which have been negotiating on a merger for some time, still have to agree on a number of important points, The Financial Times reported today.

13 April 2007

AMSTERDAM – A merger between ABN Amro and British Barclays could still be more than a week away. The banks, which have been negotiating on a merger for some time, still have to agree on a number of important points, The Financial Times reported today.

The newspaper reports that ABN Amro and Barclays are finding it more difficult than anticipated to draw up a proposal for regulators. Both parties agree that De Nederlandsche Bank (DNB) will be the designated regulatory authority.

The banks have also agreed on cost savings of EUR 2.25 billion to 3 billion, the British paper reports.

Both parties want to have reached agreement before the general shareholders' meeting on 26 April. Then the Dutch bank will be able to advise its shareholders to vote in favour of the British bid, which will most like come to about 65 billion euro.

ABN Amro's supervisory board has reportedly hired in Goldman Sachs to give an independent assessment on whether Barclays' offer is a fair one.

At the shareholders' meeting on 26 April, shareholder TCI wants to hold a vote on splitting up the bank, a move that ABN Amro management fiercely opposes. TCI also wants other banks to be considered in the search for a merger partner.

[Copyright Expatica News 2007]

Subject: Dutch news

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