Page 23 - Articulate Files

RBS/ABN AMRO

Strategy, Finance, Banking, Strategic Leadership

Royal Bank of

Scotland

Group was one
of the largest

financial

institutions in

the world. On 8th October 2007 the consortium put
together by its CEO Sir Fred Goodwin announced its

takeover of ABN AMRO as finally being victorious over

Barclays. The $99.8 billion deal was finally sealed as a result
of acceptance from 86% of the shareholders of ABN AMRO.

Barclays’ decision on 5th October to withdraw from the
conflict came after it obtained less than 1% of the share

acceptances for its €62.2 bn ($87.9 bn) cash (37%)-and-

equity (63%) bid. It had required 80% backing from ABN’s

1.9bn outstanding shares. This left the field to the
consortium to acquire the Dutch bank and split it three

ways. The break-up involved 4,500 branches across 53

countries and unravelling businesses ranging from cash
management operations in Asia to retail banking in Brazil.

Barclays' withdrawal had been widely expected as its cash-

and-shares offer had been undermined by the worldwide

sell-off in banking stocks in the wake of the credit squeeze
following on from the collapse of the US sub-prime market

in October 2007. It was 13 percent below the mostly cash

RBS-led bid. Efficiency ratios across ABN’s business units

had continued to lag behind peer banks.