 Barclays,
which has been in merger talks with ABN Amro, may have to prepare for a hostile
takeover battle with a trio of banks stalking the Dutch bank. Barclays
had revealed in March that it was in exclusive talks with ABN about a merger.(See:
Barclays opens buy out talks
with ABN AMRO) A
UK-European continent consortium comprising Britain''s Royal Bank of Scotland,
Spain''s Santander and Belgium''s Fortis unveiled their interest in acquiring ABN
Amro last Friday. Barclays,
the UK''s third-largest bank, has until Tuesday to work out a deal for a full takeover
of ABN Amro. Analysts say any failure to conclude a successful deal could expose
Barclays to a takeover bid. The
UK bank is believed to be ready to offer €35 a share for ABN. In addition,
it has offered to move the combined headquarters to the Netherlands in an attempt
to appease Dutch sentiments. Analysts
believe the three-bank consortium may be prepared to offer up to €40 a share
for ABN, which could deprive Barclays of the Dutch bank. A
successful bid by the challengers to the Barclays bid would lead to a break up
of the Dutch bank, with US operations and its wholesale
banking business likely to go to The Scottish bank. Earlier
in Jannuary this year, ABN had sold its Mortgage arm with $9-billion of assets
and $224 billion portfolio to Citigroup.
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