Monday, October 8, 2007

Braclays shut out by Santander, Royal Bank of Scotland and Fortis for Dutch Giant ABN AMRO


Bank of America may have stake its claim in Lasalle Bank, the American Arm of Ditch Bank ABN AMRO, but its The Royal Bank of Scotland, Spain's Santander and Fortis Bank who have shut out Barclay's bid in the bidding was as to who will take over ABN Amro.
RBS will get ABN's investment and wholesale banking plus its Asian operations, Santander its Italian and Brazilian business, while Fortis gets the Dutch operations and wealth and asset management arms. Thousands of jobs are likely to be lost in the break-up.
According to Reuters, Barclays said the merger protocol with ABN was now terminated, and that it was requesting payment of the 200 million euro break fee, which it said would "significantly exceed the costs that Barclays incurred in connection with the offer".
The bank also said it would restart its buyback program, with up to 1.55 billion pounds ($3.16 billion) available to purchase a maximum of 196 million shares for cancellation.

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