Activist fund Atticus asks Barclays to

Barclays, however, rejected the suggestion to drop its bid, saying that the fund's views were not representative of the views of its shareholders, the Financial Times reported, without naming anyone.

The Wall Street Journal also reported that Atticus told Barclays officials that Barclays stock is undervalued and that if the bank dropped its bid, Barclays stock price would increase.

Atticus fund and activist investor that holds a 1 per cente in the bank, has urged it to abandon its agreed 63 biillion euro takeover of.

In a letter to Barclays chairman Marcus Agius last week, Atticus said the bank's offer for Netherlands-based ABN as an attempt to buy "an inferior business in an auction at inflated prices".

Atticus, which in 2005 helped derail German stock market operator Deutsche Boerse's proposed takeover of the London Stock Exchange Plc, said it would seek to rally opposition to Barclays' ABN bid among the bank's other shareholders.

A Barclays spokesperson confirmed that Atticus had asked the bank to drop its bid, but said its other shareholders "overwhelmingly supported the ABN takeover proposal".