RBS team favourite for ABN AMRO takeover
The Royal Bank of Scotland-led team battling Barclays for ABN Amro is a clear favourite to land the Dutch bank, ABN’s chief executive said today.
An “overwhelming majority” of shareholders is expected to back the RBS consortium’s €70.2bn offer, chief executive Rijkman Groenink told an extraordinary meeting to discuss the bids in Rotterdam.
Barclays’ rival offer – around two-thirds of which is in shares – has fallen in value to around €60bn after the company’s stock market value slipped in the recent financial turmoil.
Both bids have gained backing from Dutch regulators but the Dutch bank’s board - while not endorsing either bid – has argued that a Barclays takeover was more consistent with ABN’s strategy.
Mr Groenink, who was accused by some shareholders at the meeting of favouring the Barclays bid, said he could not endorse the RBS offer as it would amount to a “carve up” of the group.
Barclays plans a merger with ABN, with the headquarters of the new bank moving to Amsterdam. RBS plans to split ABN’s businesses with its fellow consortium members, Spain’s Santander and Belgian bank Fortis.
Mr Groenink said there was still a risk that the RBS team could fail to secure financing for its bid in the current debt market turmoil, but admitted that it was unlikely.
He said: “Despite the fact that markets are very troubled and access to credit markets are very cramped, neither the ring of underwriters led by Merrill Lynch, nor the consortium has invoked a “material adverse change” clause that would allow them to lower their offer or walk away from the deal in light of market circumstances.”
The consortium now only needs approval from the European Union for the involvement of Fortis in the bid after it ruled that Santander and RBS could proceed with their offer yesterday.
ABN’s shareholders have until October 4 to accept the Barclays deal, with the consortium’s bid closing a day later.
