The battle for Dutch bank ABN Amro is to move to an Amsterdam court on Thursday where a group of shareholders are hoping to strike a blow against management plans for a merger with Barclays.
ABN Amro is a takeover target for British bank Barclays, which has offered â,¬67-billion, and a consortium of banks led by Royal Bank of Scotland, which has offered â,¬72-billion.
ABN management has agreed to a deal with Barclays that includes a provision to sell United States unit LaSalle Bank to Bank of America before the completion of the takeover.
But some shareholders, who would prefer the higher offer from the consortium, believe the sale of LaSalle is a “poison pill” intended by ABN management to deter the consortium.
Dutch small-shareholders group VEB has asked the commercial court to rule on whether the decision to sell LaSalle should be put to a vote by shareholders for approval.
If the court rules in favour of VEB, a key part of the deal with Barclays would be in jeopardy and the decision would encourage the consortium to continue with their approach.
ABN Amro acknowledged another legal challenge on Wednesday, saying a suit had been filed in a New York state court contesting the sale of LaSalle.
Under the terms of the agreement to sell the US unit, Bank of America (BoA) would pay $21-billion unless ABN received another higher bid before May 6.
However, if another bid were made, BoA would have the exclusive chance to increase its offer and would then win the battle.
LaSalle is one of ABN’s most attractive assets and is the main bait for the Royal Bank of Scotland, analysts say.
Whatever the outcome of the tussle for ABN Amro, a takeover by Barclays or the consortium, which also includes Spain’s Banco Santander and Dutch-Belgian group Fortis, would constitute the biggest banking takeover ever.
The management of ABN Amro, led by chief executive Rijkman Groenink, has been under fire from VEB and British hedge fund TCI.
Groeink is firmly in favour of the Barclays offer, which promises to keep ABN Amro intact except for the sale of La Salle. The consortium intend to divide up ABN’s asset between themselves.
TCI revealed on Tuesday that it had called for the ousting of Groenink because of his perceived bias in favour of Barclays and because he had “no intention of negotiating in good faith with the RBS consortium”. — AFP