RBS group has 3.25 pc stake in ABN

14th August 2007, Comments 0 comments

14 August 2007, AMSTERDAM (AP) - A trio of banks led by Royal Bank of Scotland PLC said Tuesday it bought a 3.25 percent stake in ABN AMRO Holding NV - the Dutch bank it is attempting to buy for EUR 70.6 billion in what would be the banking industry's largest takeover.

14 August 2007

AMSTERDAM (AP) - A trio of banks led by Royal Bank of Scotland PLC said Tuesday it bought a 3.25 percent stake in ABN AMRO Holding NV - the Dutch bank it is attempting to buy for EUR 70.6 billion in what would be the banking industry's largest takeover.

The move will not change the fundamental dynamics of the RBS-led group fight with Barclays PLC to buy ABN, but is an opportunistic move by the group to possibly save a little money and to strengthen its hand.

The RBS-led group said it bought more than 40 million shares on the open market at an average price of EUR 33.81 per share on Monday and Friday - when ABN AMRO's shares fell beneath both offer prices amid sharp drops in global stock markets.

At current share prices, the RBS group's mostly cash bid is worth EUR 38.13 per ABN share, while Barclays' mostly share bid is worth EUR 33.78.

ABN shares gained 0.4 percent to EUR 34.61 in Amsterdam on Tuesday, suggesting that investors are uncertain which bid will prevail.

Shareholders meet 20 September to discuss the rival bids.

[Copyright AP 2007]

Subject: Dutch news

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