The biggest takeover battle in the banking history, expected to take interesting turn, as a consortium of banks led by Royal Bank of Scotland PLC have to revive its bid for the Dutch bank ABN AMRO as they previously asserted that they would reconsider its fresh offer on 27th may.
But on the preset period, announcement will not appear as due date is felling on the holiday, therefore the decision to raise bid or not, will make public on Tuesday. Previously, the banks had declared that conglomerate is planning to make a mostly cash offer worth around 38.40 euros per ABN Amro share, or $94.1 billion.
The acquisition battle, started in April and deal stalled when ABN Amro agree to sell its US arm LaSalle Bank Corp to Bank of America for $21 billion, That was widely seen as a poison pill measure to ward off the hostile bid from RBS, which also wants LaSalle.
Now, for the RBS-led consortium, have to comfy with the Dutch law to proceed ahead as conglomerate have to clear its position. Some analysts expect that the group have three options in the deal as they can leave the bid, or group can ask for more time to make a decision or it can put a new offer for ABN AMRO on the table.
The seeker group has indicates that it would top Barclays offer with $94.1 billion, but a consortium bid is contingent on ABN AMRO reversing the $21 billion sale of LaSalle to Bank of America.
Now, ABN AMRO is finding them on the crossroad as Bank of America has threatened, if bank will back out, they will claim for compensation. Dutch court has blocked the signed deal of LaSalle to Bank of America because deal could not get the shareholders approval. ABN AMRO appealed against the ruling, which is pending in the court.
ABN AMRO’s shareholders will ultimately end the months long fuss over the whole deal includes LaSalle sale. Shareholders will vote on it, in an extraordinary shareholder meeting for which a date has to be decided.
Image: socalsail
Via: Chicago tribune
