RBS won't lower ABN AMRO offer

15th August 2007, Comments 0 comments

15 August 2007, LONDON (AP) - A consortium led by Royal Bank of Scotland PLC said Wednesday that it will not lower its EUR 70.6 billion bid for ABN AMRO Holding NV, even though the Dutch bank's first-half dividend breached a level that RBS had said could prompt a reduction of the offer.

15 August 2007

LONDON (AP) - A consortium led by Royal Bank of Scotland PLC said Wednesday that it will not lower its EUR 70.6 billion bid for ABN AMRO Holding NV, even though the Dutch bank's first-half dividend breached a level that RBS had said could prompt a reduction of the offer.

RBS had said in a previously published offer document that it reserved the right to cut its bid price by the excess amount if ABN AMRO paid a dividend above EUR 0.55 per share. The Dutch bank declared an interim dividend of EUR 0.58 per share on July 30.

"The banks have determined that, despite this amount being in excess of EUR 0.55, the consideration will not be reduced in respect of such excess," RBS said in a statement to the London Stock Exchange.

The offer from the RBS consortium, which also comprises Dutch-Belgian bank Fortis NV and Spain's Banco Santander Central Hispano SA, is up against a competing bid from British bank Barclays PLC worth around EUR 61 billion.

Barclays on Monday received approval from the Dutch central bank and Finance Minister Wouter Bos for its proposed takeover, while the RBS consortium - which began seeking approval a month later than Barclays - has yet to receive a ruling.

Shareholders meet 20 September to discuss the rival bids.

Royal Bank of Scotland shares dropped 3 percent to 555 pence (EUR 8.19) on an overall lower London Stock Exchange. ABN AMRO shares fell 1.1 percent to EUR 34.03, while Fortis was down 1.4 percent to EUR 26.37.

Barclays fell 2 percent to 624 pence (EUR 9.21).

[Copyright AP 2007]

Subject: Dutch news

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