ABN Amro break-up ''not a problem''

Dutch regulators have indicated that they would not object to the acquisition of ABN Amro by a foreign buyer, even if led to the Dutch entity being dismantled for sale.

A report in the UK-based Financial Times quotes Nout Wellink, president of the Dutch Central Bank, as saying that a restructuring presented "no problem whatsoever", if a sound bank with a restructuring proposal were to take over the bank.

Earlier Wellink had told a Dutch newspaper that the break-up of ABN Amro would be "a bridge too far". Observers expect the comments to encourage other bidders.

So far, Barclays has been in exclusive talks with ABN Amro about a tie-up for the past three weeks. (See: Barclays opens buy out talks with ABN AMRO)

The Royal Bank of Scotland has been talked about as a potential contender for the acquisition that might be able to pay a better price if it sold ABN Amro's Brazilian operations to another bank.

Barclays' talks with the Dutch bank were prompted by calls for a break-up from an activist investor The Children's Investment Fund.