Barclays CEO says RBS consortium's bid would break up ABN Amro
Barclays PLC (BCS : ![]()
BCS58.58, +1.73, +3.0% ) Chief Executive John Varley warned in a letter filed with the Securities and Exchange Commission on Wednesday that a rival bid for ABN Amro Holdings NV (ABN : ![]()
ABN49.86, +2.48, +5.2% ) would result in "the deconstruction into heaven knows how many parts of one of the biggest banks in Europe."
Barclays PLC
Last: 58.58+1.73+3.04%
5:00pm 04/25/2007
Delayed quote data
5:00pm 04/25/2007
Delayed quote data
Sponsored by:
abn amro hldg nv sponsored adr
Last: 49.86+2.48+5.23%
6:00pm 04/25/2007
Delayed quote data
6:00pm 04/25/2007
Delayed quote data
Sponsored by:
A consortium led by the Royal Bank of Scotland earlier Wednesday made a EUR72 billion offer for Netherlands-based ABN Amro that surpassed the EUR67 billion offer Barclays made Monday.
Varley said he wasn't surprised by the RBS consortium's bid, but believes the choice between the two offers is clear. The Barclays bid, he said, would create "one of the great banking powerhouses in the world," while RBS' offer would break one of Europe's biggest banks into pieces.
The consortium, which also includes Fortis NV (FORSY) and Santander Central Hispano SA (STD), said its offer is 13% higher than that of Barclays and would be made 70% in cash and 30% in RBS shares.
In a joint statement released before the SEC filing, the consortium said it believes "the potential transaction will create stronger businesses with enhanced market positions and growth prospects in each of ABN Amro's main markets."
Shares of ABN Amro closed Wednesday at $49.86, up $2.46
posted by Foch at 3:37 PM
