The consortium, which consists of Belgium’s Fortis and Spain’s Santander, is offering a consideration of E38.40 per ABN Amro share, which values the company at E71.1 billion. Moreover, 79% of the consideration will be offered in cash. According to the consortium, this is E8.6 billion more than Barclays’ offer.
Under the proposal, Fortis will raise E24 billion; RBS will raise E27.2 billion, while Santander will provide E19.9 billion of the consideration. All three companies will significantly enhance their businesses if the transaction is successful.
Under the terms of the proposal, the sale of ABN Amro must include its US subsidiary LaSalle, which the group had previously agreed to sell to Bank of America. It has offered, as part of the deal, E27.2 billion for LaSalle and ABN Amro’s global wholesale and retail operations.
According to The Times, if the sale of LaSalle to Bank of America does not go ahead due to RBS’ proposal, RBS has agreed to cover a $200 million fee which has been previously agreed between both the parties, in addition to covering any litigation costs in the event that the US bank decides to take legal action against the Dutch finance giant for breach of contract.
ABN Amro is now waiting for Barclays’ publication of its final offer, which is due by July 4, 2007, The Times reported.
