RBS puts ABN Amro cards on table

29-05-2007

RBS puts ABN Amro cards on table
A consortium led by the Royal Bank of Scotland (RBS) has outlined its takeover proposal for ABN Amro.

The offer values the Dutch bank at €71.1 billion (£48.2 billion), or €38.40 (£26) per share.

ABN Amro has already accepted an all-share bid from Barclays Bank, 14 per cent lower than the offer submitted by RBS, Fortis and Santander at €63 billion (£42.7 billion).

The consortium's bid is made up of €30.40 in cash plus 0.844 RBS shares for every ABN Amro share.

RBS today said that ABN Amro would profit from "greater and more certain transaction benefits" by accepting the consortium's bid than it would by uniting with a single partner.

"Given the natural assumption that a consortium approach would bring further complexity, we are pleased to set out a straightforward proposal that is attractive to our own shareholders as well as those of ABN Amro," Sir Fred Goodwin, RBS group chief executive said.

According to today's takeover outline, ABN Amro would enjoy a "strengthened platform" for growth outside the UK if it accepted the RBS bid, while "fewer employees [would be] expected to lose their jobs than with Barclays' proposals".

The consortium's takeover offer intends for ABN Amro's LaSalle to remain with the group, but the Dutch bank has already agreed to sell its subsidiary to Bank of America.

However a court in the Netherlands said earlier this year that the sale was illegal as the bank had not consulted its shareholders.


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