ABN Amro withdraws bid support

Source: Exec Digital UK

Date :30/07/2007 09:03:12

Dutch bank ABN Amro has withdrawn its formal support for Barclays' €67.5 billion (£45.4bn) takeover bid.

ABN Amro said it would not recommend either the Barclays bid or a rival €71 billion euros offer from a group led by the Royal Bank of Scotland to investors.

In a statement, ABN said it was not currently able to recommend either of the bids as it looked to ensure "a level playing field" between the bidders.

The move is a blow to Barclays whose previous support from ABN's board was seen as a crucial factor in helping it to overcome the higher RBS bid.

Barclays recently secured backing for its bid from the China Development Bank and Singapore investment firm Temasek, enabling it to increase the amount of cash it was prepared to offer to ABN shareholders.

The RBS group also recently sweetened its offer for ABN as the two groups vied to win control of the bank.

Barclays had made its bid conditional on gaining the support of ABN's board but it has now changed its stance, saying their support would merely be needed to complete the deal.

Barclays said it still believed its offer would prove attractive to ABN shareholders.

It is thought that the bidding battle – which would create one of the world's largest banks - could last for many months as both parties seek to overcome regulatory obstacles and win over shareholders.

July 30 2007