ABN bid battle could go hostile

16 April 2007

Barclays had revealed in March that it was in exclusive talks with ABN about a merger.(See: Barclays opens buy out talks with ABN AMRO)

A UK-European continent consortium comprising Britain''s Royal Bank of Scotland, Spain''s Santander and Belgium''s Fortis unveiled their interest in acquiring ABN Amro last Friday.

Barclays, the UK''s third-largest bank, has until Tuesday to work out a deal for a full takeover of ABN Amro. Analysts say any failure to conclude a successful deal could expose Barclays to a takeover bid.

The UK bank is believed to be ready to offer €35 a share for ABN. In addition, it has offered to move the combined headquarters to the Netherlands in an attempt to appease Dutch sentiments.

Analysts believe the three-bank consortium may be prepared to offer up to €40 a share for ABN, which could deprive Barclays of the Dutch bank.

A successful bid by the challengers to the Barclays bid would lead to a break up of the Dutch bank, with US operations and its wholesale banking business likely to go to The Scottish bank.