RBS group to offer 90% cash for ABN bid

RBS group to offer 90% cash for ABN bid
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First Published: Mon, Jul 16 2007. 03 17 PM IST
Updated: Mon, Jul 16 2007. 03 17 PM IST
New York: A trio of banks led by Royal Bank of Scotland Group plans to present a new, nearly all cash bid for Dutch bank ABN AMRO Holding NV as early as Monday 16 July, according to two media reports.
RBS and its partners, Santander and Fortis, plan to boost the cash portion of their 71 billion euro ($98 billion) offer to more than 90% from 79%, the Wall Street Journal and the Financial Times reported on Sunday 15 July.
While the cash portion is higher, the consortium is unlikely to boost the bid above the 71 billion it has offered for the company, the reports said.
Barclays has agreed an all-share offer for ABN worth about 64 billion euros ($88 billion). The RBS-led consortium trumped that with its bid but only on the condition that LaSalle remained part of the bank. ABN agreed to sell LaSalle to Bank of America for $21 billion, a deal the consortium moved to block. RBS sought LaSalle to bolster US operations.
The RBS bid is likely to be either the same 71.1 billion, or 38.40 euros per share, as its previous bid, or less than 1 euro per share lower, the Wall Street Journal said. The group had planned to withhold 1 euro per share to cover costs for litigation over ABN’s LaSalle bank unit. The legal battle ended on 13 July after the Dutch Supreme Court said ABN could sell Chicago-based LaSalle.
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First Published: Mon, Jul 16 2007. 03 17 PM IST
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