Royal Bank-led consortium bids $95.6 billion for ABN AMRO

29 May 2007

The planned offer of 30.40 euros in cash plus 0.844 new shares in RBS values ABN AMRO at 38.40 euros per share.

The consortium of RBS, Fortis and Santander expects aggregate estimated cost savings of 4.23 billion euros and estimated profit growth from revenue benefits of 1.22 billion euros by the end of 2010.

Royal Bank will pay 27.2 billion euros, Fortis 24 billion euros and Santander 19.9 billion euros in the transaction, a statement issued by Fortis said.

"Because of the banks'' comprehensive strategic fit with ABN AMRO across its activities, the banks expect that ... they will be able to create stronger businesses with enhanced market presence and growth prospects," the statement said.

The proposed offer is not subject to any financing condition, with capital raisings fully underwritten, but is conditional on ABN AMRO shareholders voting against ABN''s planned sale of its US unit, LaSalle, to Bank of America, Fortis said.

Fortis plans to raise 15 billion euros of new equity via a rights issue and up to 5 billion euros of new Tier 1 capital, and to release up to 8 billion euros of capital.