Amsterdam, Netherlands: Barclays PLC said on Monday 23 July it would increase its offer for ABN Amro Holding NV to euro67.5 billion (US$93.2 billion, Rs3,74, 593 crore) with the help of Asian financial partners.
Barclays’ new offer is euro42.7 billion (US$58.9 billion) in shares and euro24.8 billion (US$34.2 billion) in cash, or euro35.73 (US$49.32) per ABN Amro share.
That compares with its earlier bid of euro33.86 (US$46.74) and a rival offer by a Royal Bank of Scotland Group PLC-led consortium of euro38.40 (US$53.01), which values the bank at euro71.1 billion (US$97.8 billion).
Either bid, if successful, would be the largest takeover in the history of the financial industry.
ABN Amro shares closed Friday at euro36.63 (US$50.58).
Barclays said it had struck a deal with China Development Bank and Temasek Holdings Ltd. of Singapore, whereby the pair will buy euro3.6 billion (US$5.0 billion) of new Barclays shares now, and an additional euro9.8 billion (US$13.5 billion) if the bid to buy ABN Amro Holding NV is successful.
At the same time, the bank said it planned a share buyback of euro3.6 billion to match the amount of its share issue to the Asian investors.
The ABN Amro merger “is expected to generate significant and sustained future incremental earnings growth for all shareholders,” Barclays said in a statement.
Barclays is to report first-half earnings on 2 August.
In an unaudited trading statement, the British lender said income was 11.9 billion British pounds (euro17.7 billion, US$24.4 billion) and pretax profit was 4.1 billion British pounds (euro6.1 billion, US$8.4 billion).
“Through the introduction of two highly respected shareholders, from whom we will derive support and advice, we will be able to drive our future development in the rapidly growing Asian markets, Barclays Chief Executive John Varley said.