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RBS bid for Amro passes Barclays'

A consortium of banks led by Royal Bank of Scotland (RBS) PLC said yesterday that it will bid US$95.5 billion for ABN Amro of the Netherlands, topping a bid from Barclays PLC and continuing a struggle with Bank of America Corp for control of the Dutch bank's US arm.

The offer by the RBS group is for US$51.69 per ABN Amro share, mostly in cash, at least 10 percent more than Barclays' all share offer worth US$46.69 at current levels. ABN Amro's shares closed on Friday at US$48.59.

Uncertainty

But uncertainty over which bid will prevail is likely to continue.

ABN Amro has separately agreed to sell its US arm, Chicago-based LaSalle Bank Corp, to BofA for US$21 billion, with the proceeds going to Barclays as part of its takeover deal.

Meanwhile, the RBS deal is contingent on the LaSalle sale not going forward.

A Dutch court has frozen the sale of LaSalle, saying ABN Amro's management had overstepped its bounds by attempting to sell it without shareholder approval. BofA has filed suit in a US federal court, saying its purchase contract is enforceable under US law.

RBS and its partners would "still welcome the opportunity of agreeing with ABN AMRO and Bank of America on a way forward," RBS said in a statement yesterday.

Consortium

The consortium of RBS, Fortis and Santander has been rebuffed by ABN management, which has agreed to a takeover by Barclays.

The consortium said that it preferred to agree on a deal with ABN management but would approach shareholders if necessary.

It said it expected its offer to be placed alongside the Barclays takeover proposal in any takeover vote put to ABN's investors.

"All of the bids should go before shareholders, and they should allow shareholders to decide in an environment of having as level a playing field as can be," RBS chief executive Fred Goodwin said.
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