The consortium of banks has offered 71,1 billion euro for ABN AMRO
Consortium of banks, into which Belgian Fortis, Royal Bank of Scotland (RBS) and Spanish Santander enter, has offered 71,1 billion euro for Netherlands ABN AMRO.
The consortium offers 30,4 euros cash plus 0,844 % of new actions RBS for each ABN AMRO share for each ABN AMRO’s share that estimates one ABN AMRO’s share in 38,4 euros and represents the premium of 13,7 % in comparison with the British Barclays’ offer. Realization of the transaction will also depend on ABN AMRO’s shareholders’ decision on LaSalle’s sale.
Due to this transaction in 2101 banks are expecting to gain reduction of costs on 4,23 billion euro and to increase profit by 1,22 billion euro. Fortis provides 33,8 % of the offer (24 billion euro), RBS - 38,3 % (27,2 billion euro) and Santander - 27,9 % (19,9 billion euro).
It is worth of mentioning that on May, 7th, 2007, ABN AMRO has rejected the offer of British bank Royal Bank of Scotland (RBS), made together with the Spanish bank Santander and Netherlands-Belgian financial company Fortis Group, on purchase of the American bank LaSalle, being ABN AMRO’s subdivision, for 24,5 billion dollars In opinion of a management of the Netherlands bank, offered by the consortium that is not better than Bank of America Corp.’s offer, however ABN AMRO is going to hold extraordinary assembly of shareholders in order to allow them to express their point of view.
As it has become known, on May, 5th 2007, the consortium, led by RBS, has offered 24,5 billion dollars for American bank LaSalle. The consortium also planned to get all ABN AMRO, having offered 38,4 euros for the share. Thus, ABN AMRO could be estimated in the sum of 72 billion euro. It is essential more, than British bank Barclays Plc. has offered within the course of merge for ABN AMRO’s shares. In the result of the transaction one share of the Netherlands bank would cost 36,25 euros, and the company would cost 67 billion euro. The bank still tends to the transaction with Barclays which would allow keeping ABN AMRO’s structure.
