RBS-led consortium is climbing step-by-step to ABN Amro. Shareholders in RBS voted overwhelmingly in favor of $97.2bn bid for Amro as 94.5% of RBS shareholders support the deal at an extraordinary meeting in Edinburgh.
RBS shareholders follow their counterparts at Santander and Fortis in approving the deal. The consortium is considered a strong favorite to win ABN after an acrimonious battle.
The vote came on a brutal day for equity markets that saw RBS shares hit a new low for the year, closing down 3.9% at 562p per share. Shares in Santander and Fortis also fell amid another day of panic selling in the equity markets, stoking speculation that the meltdown of the credit markets and plummeting equities could upset plans to take over the Dutch giant.
However, RBS Chief Executive Fred Goodwin downplayed the impact of the market turmoil on the offer.
Volatility in the equity markets are also shattering Barclays’ hope to acquire Amro as the value of its offer has fallen sharply alongside the equity market fall. It is speculating that British bank can withdraw its offer, but officially, no comment has received yet.
The ABN shareholders will ponder over both the offers, until first week of October, whereas ABN will discuss it with shareholders on September 20.
Instability in the market plunge the banks’ share value as ABN shares closed down 3.5 percent at 33.85 euros, well below the 38 euros per share value of the consortium’s offer, while shares in RBS, Fortis and Santander each shed 3 to 4% and Barclays tumbled more than 6 percent.
Via: Telegraph
