TCI unhappy about LaSalle sale

24th April 2007, Comments 0 comments

24 April 2007, AMSTERDAM – British hedge fund The Children's Investment Fund (TCI) is concerned that ABN Amro's sale of US subsidiary LaSalle "unfairly impedes" the banking consortium led by Royal Bank of Scotland in its attempt to take over the Dutch bank.

24 April 2007

AMSTERDAM – British hedge fund The Children's Investment Fund (TCI) is concerned that ABN Amro's sale of US subsidiary LaSalle "unfairly impedes" the banking consortium led by Royal Bank of Scotland in its attempt to take over the Dutch bank.

TCI said this on Monday in reaction to the announcement of a merger agreement between ABN Amro and Barclays.

ABN Amro announced on Monday that it will be taken over for a sum of EUR 67 billion by Barclays; Barclays Group Chief Executive John Varley did stress on Monday that the deal was technically a merger, not a takeover. The Dutch bank also plans to sell US subsidiary LaSalle by the end of the year for USD 21 billion in cash.

LaSalle is the focal point of ABN Amro's US activities and the division on which Royal Bank of Scotland had set its sights.

The news about the proposed sale of LaSalle prompted the bank consortium led by RBS to call off talks with ABN Amro planned for Monday afternoon.

Fortis and Spanish bank Santander are also part of the consortium, along with RBS. Market parties expected earlier in the day that the trio might come with a hostile takeover bid.

The consortium received support on Monday from the Dutch Investors' Association (VEB), which also believes that a quick sale of LaSalle is in violation of the Tabaksblat code for good corporate governance.

[Copyright Expatica News 2007]

Subject: Dutch news

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