Barclays launches €65bn ABN bid

Source: Stock Market Digital

Date :06/08/2007 09:06:29

Barclays has formally launched its long awaited €65 billion (£43.6 billion) takeover bid for Dutch bank ABN Amro.

Barclays is hoping its offer will beat a €71 billion bid tabled by a consortium led by Royal Bank of Scotland.

ABN Amro has refused to back either offer, in order to ensure "a level playing field" between the bidders.

Under a proposed cash and share offer, Barclay's bid would see ABN investors receive 13.15 euros in cash and 2.13 new Barclays shares for each ABN share.

The offer period runs from 7 August to 4 October, Barclays said.

The Dutch group had originally supported the Barclays offer, a stance which was viewed as a crucial factor in Barclays winning the fight against RBS, but withdrew its backing last month. .

The RBS-led group - which also involves Belgian-Dutch bank Fortis and Spain's Santander - sweetened their bid last month, upping its cash element from 71% to 93% in an effort to win over shareholders.

However Fortis investors have yet to vote on whether they will allow the bank to go ahead with the purchase.

Shareholders will hold a vote on the plan, and whether the bank can issue 13bn euros in shares to fund its part of the deal, later on Monday.

August 6 2007