Fortis to sell notes to fund ABN deal

11th July 2007, Comments 0 comments

11 July 2007, AMSTERDAM (AP) - Financial services group Fortis NV said Wednesday that it plans to sell up to EUR 2 billion in exchangeable notes to help fund its part of a proposed acquisition of ABN Amro Holding NV.

11 July 2007

AMSTERDAM (AP) - Financial services group Fortis NV said Wednesday that it plans to sell up to EUR 2 billion in exchangeable notes to help fund its part of a proposed acquisition of ABN Amro Holding NV.

Moody's Investor Service rates the securities "A2", while Fitch Ratings rated them "AA-", both of which are investment grade.

Fortis is part of a consortium led by Royal Bank of Scotland Group PLC that has been fighting for control of ABN Amro in the largest takeover fight in the financial industry's history.

Barclays made an offer to buy ABN Amro in April through an all-stock transaction that values the business at about EUR 33.86 per share, or EUR 62.7 billion. Its bid is dependent on the USD $21 billion sale of ABN's Chicago-based LaSalle Bank to Bank of America going through.

The RBS group made a mostly cash offer worth about EUR 38.31 per share, or EUR 71.0 billion. RBS wants LaSalle and its offer is dependent on that sale being blocked - though it could rebid at a lower level if it loses LaSalle.

Amsterdam's Superior Court has blocked the LaSalle sale, bringing the takeover fight to a standstill until the Netherlands Supreme Court finishes reviewing that ruling, which is expected Friday.

Fortis shares dipped 1.1 percent to EUR 30.56 on Euronext.

[Copyright AP 2007]

Subject: Dutch news

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