 Mumbai: Barclays Plc has confirmed press reports that activist US hedge fund Atticus Capital LP, which has acquired a one per cent stake in the British bank, is pushing it to drop its 63 billion-euro ($84.6 billion) bid for Dutch bank ABN AMRO. Barclays, however, rejected the suggestion to drop its bid, saying that the fund's views were not representative of the views of its shareholders, the Financial Times reported, without naming anyone. The Wall Street Journal also reported that Atticus told Barclays officials that Barclays stock is undervalued and that if the bank dropped its bid, Barclays stock price would increase. Atticus fund and activist investor that holds a 1 per cente in the bank, has urged it to abandon its agreed 63 biillion euro takeover of. In a letter to Barclays chairman Marcus Agius last week, Atticus said the bank's offer for Netherlands-based ABN as an attempt to buy "an inferior business in an auction at inflated prices". Atticus, which in 2005 helped derail German stock market operator Deutsche Boerse's proposed takeover of the London Stock Exchange Plc, said it would seek to rally opposition to Barclays' ABN bid among the bank's other shareholders. A Barclays spokesperson confirmed that Atticus had asked the bank to drop its bid, but said its other shareholders "overwhelmingly supported the ABN takeover proposal". "The views expressed by Atticus are not representative of the feedback that we have received from shareholders," Barclays said in a statement. Atticus could garner support from Barclays shareholders if the UK bank was to raise its bid for ABN. According to the Financial Times, investors speaking for more than 10 per centt of the stock are prepared to oppose the takeover if Barclays sweetens its offer price. Analysts said the two banks have a relative lack of merger synergies that makes it difficult for the UK bank to justify paying more. Although Atticus has a relatively small holding, activist investors tend to have a significant sway, and can open up a sometimes sleepy shareholder base,' said David Dodds, another analyst. Barclays is likely to ask its shareholders to vote on the ABN takeover in August. In July, the Dutch Supreme Court will deliver a final ruling on whether ABN can proceed with the sale of LaSalle, which has been challenged by some ABN shareholders. Last month, a lower court ruled the sale should not have gone ahead with shareholders' prior approval.
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