RBS bid hopes lifted by Lasalle ruling
Attempts by Royal Bank of Scotland to lead a buy-out of ABN Amro were boosted today when a court blocked the Dutch bank’s sale of its US business LaSalle.
The verdict from the Dutch Enterprise Chamber follows a legal move from shareholder rights group VEB to halt ABN’s $21bn (€15.5bn) sale of LaSalle to Bank of America.
LaSalle is a key target of Royal Bank of Scotland, which is leading a rival consortium prepared to offer £49.1bn (€36bn) for ABN and break up the Dutch bank.
ABN agreed a £45bn (€33.2bn) bid from Barclays last week, and the sale has been seen as a “poison pill” blocking a potential counter-bid from the rival team.
The Dutch court ruled that ABN must seek approval from shareholders for the sale of LaSalle because it changed the nature of the business.
The decision increases the chances of an open auction for the Dutch bank, which was keen to press ahead with a bid from Barclays – creating the world’s fifth largest bank – without a rival challenge.
Collins Stewart banking analyst Alex Potter said: “This materially damages Barclays’ chances of winning ABN Amro.”
Mr Potter added that the halting of the sale also took the pressure off the RBS consortium which had been under pressure to beat Bank of America’s price for LaSalle under a “go shop” clause which expires on Sunday.
He said: “It gives them breathing space to put their offer to Dutch shareholders.”
The Amsterdam-based group faced attacks from its shareholders over efforts to block the rival and last week opened its books to the RBS team, which also includes Belgian bank Fortis and Spain’s Santander.
It also dropped a “stand-still” clause preventing the the rival bidder from making a hostile bid for the firm for a year.
If the RBS team wins control of the Dutch bank, it plans to break the company up, with Fortis taking its banking operations in Holland and Belgium, and Santander the Latin American businesses and Italian bank Antonveneta. RBS is eyeing LaSalle and ABN’s Asian business.
Barclays has agreed to move its headquarters to Amsterdam as part of the proposed merger. The duo have announced plans to cut 12,800 jobs from the combined 217,000 workforce, with another 10,800 positions likely to be transferred to lower-cost locations.
A spokesman for the RBS consortium said: “We note the judgement of the court and await the response of ABN Amro to the court’s decision.”
An ABN spokeswoman said: “ABN Amro notes and considers the judgement of the Enterprise Chamber in Amsterdam and will study the implications of the outcome.”
