Barclays raises bid for ABN Amro

25th July 2007, Comments 0 comments

Barclays raises bid for ABN Amro

Barclays raises bid for ABN Amro

AMSTERDAM (AP) - Barclays PLC said Monday it would increase its offer for ABN Amro Holding NV to EUR 67.5 billion with the help of Asian financial partners.

Barclays’ new offer is EUR 42.7 billion in shares and EUR 24.8 billion in cash, or EUR 35.73  per ABN Amro share.

That compares with its earlier bid of EUR 33.86 and a rival offer by a Royal Bank of Scotland Group PLC-led consortium of EUR 38.40, which values the bank at EUR 71.1 billion.

Either bid, if successful, would be the largest takeover in the history of the financial industry.

ABN Amro shares closed Friday at EUR 36.63.

Barclays said it had struck a deal with China Development Bank and Temasek Holdings Ltd. of Singapore, whereby the pair will buy EUR 3.6 billion of new Barclays shares now, and an additional EUR 9.8 billion if the bid to buy ABN Amro Holding NV is successful.

At the same time, the bank said it planned a share buyback of EUR 3.6 billion to match the amount of its share issue to the Asian investors.

The ABN Amro merger ‘is expected to generate significant and sustained future incremental earnings growth for all shareholders,’ Barclays said in a statement.

Barclays is to report first-half earnings on Aug. 2.

In an unaudited trading statement, the British lender said income was 11.9 billion British pounds (EUR 17.7 billion) and pre-tax profit was 4.1 billion British pounds (EUR 6.1 billion).

“Through the introduction of two highly respected shareholders, from whom we will derive support and advice, we will be able to drive our future development in the rapidly growing Asian markets, Barclays Chief Executive John Varley said.

[Copyright AP 2007]

Subject: Dutch news


0 Comments To This Article