labels: m&a, abn-amro bank
85 per cent of ABN Amro shareholders accept Royal Bank of Scotland offer: Financial Times news
06 October 2007
Mumbai: The $99 billion (euro 70 billion) hostile bid by a group led by Royal Bank of Scotland (RBS) for ABN Amro received approval from at least 85 per cent investors of the Dutch banking group, the Financial Times reported.

RBS, which is partnering Belgian-Dutch bank Fortis and Spain''s Santander, expected its bid to get acceptance from at least 80 per cent of ABN shareholders.

Saturday''s count means the consortium could declare its offer unconditional this week, the report said.

The consortium is expected to announce the outcome of the ABN shareholder vote early next week.

British bank Barclays had already withdrawn from its bid for ABN Amro after it received support from just 0.2 per cent of the Dutch bank''s ordinary shareholders.

RBS was, in fact, already a step closer to acquiring ABN Amro after rival bidder Barclays pulled out.

The $99 billion (£49 billion) buy-out, launched by RBS in partnership with a consortium from across Europe, will be the world''s biggest takeover once it is completed.

RBS is likely to get ABN''s wholesale and investment banking unit and the Dutch bank''s Asian business. Fortis will take over ABN''s Dutch operation and also its wealth and asset management business. Santander, meanwhile, stands to get ABN''s Italian bank, Antonveneta, and its Brazilian banking operation.

Initially, RBS was to have taken control of LaSalle, ABN''s retail banking operation in the United States, but the law courts upheld ABN''s earlier decision to sell LaSalle to Bank of America for $21 billion (£10.5 billion). Of the ABN assets being bought, RBS''s proportion is 20 per cent.

The sharp increase in RBS''s already big wholesale banking arm will give it a top-five position in a range of corporate and commercial banking products, making it No 1 in the UK and mainland Europe, and No 5 in the US and Asia.

The consortium had already signalled that up to 19,000 jobs would go if its takes over ABN Amro and that some losses would also be possible in its management functions in London.

A failed bid has, meanwhile, has left Barclays open to the possibility of itself becoming a bid target. Reports said Barclays is now looking at a share buyback plan to fortify itself.

 search domain-b
  go
 
85 per cent of ABN Amro shareholders accept Royal Bank of Scotland offer: Financial Times