Scales tilt in Barclays'' favour over fight for ABN Amro with RBS Group
27 Jun 2007
The scales have tipped in Barclays Plc's favour in the biggest ever takeover fight in financial services, with the advocate general of the Dutch Supreme Court urging judges to overturn a 3 May, order of the 'enterprise chamber' of the Amsterdam Court to freeze the $21-billion sale of ABN Amro's LaSalle Bank Corp to Bank of America. The advocate general's opinion, while not legally binding, has boosted expectations of Barclays gaining control of ABN Amro with its €63.4 billion agreed deal. (See: ABN bid battle could go hostile)
The advocate general had argued that under Dutch company law, the LaSalle deal does not require approval at a general meeting of shareholders - contrary to the lower court's opinion and the argument of the VEB Dutch shareholders' association, which brought the suit.
Bank of America, ABN Amro and Barclays appealed the lower court's ruling blocking the LaSalle deal with Bank of America, which. ABN had announced on 23 April, the day it unveiled its agreed deal with Barclays.
A Royal Bank of Scotland (RBS) Plc-led consortium, which includes Dutch-Belgian financial group Fortis and Spain's Banco Santander Central Hispano SA, made a counter offer of €71.2 billion (See: Royal Bank-led consortium bids $95.6 billion for ABN AMRO) contingent on undoing the LaSalle deal. The RBS group is preparing to launch a formal bid next month, around the time the Supreme Court is expected to make its ruling.
ABN Amro would proceed with the LaSalle sale if the Hague-based court follows the advocate general's recommendation, which it does in a majority of the cases. However, the RBS consortium could still frustrate Barclays with a higher bid for ABN, even without LaSalle to win shareholder approval.
