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| Barclays agrees £45bn Dutch deal | Barclays agrees £45bn Dutch deal |
| (30 minutes later) | |
| Britain's Barclays bank has agreed to merge with Dutch bank ABN Amro. | Britain's Barclays bank has agreed to merge with Dutch bank ABN Amro. |
| The £45bn (66bn euro; $90bn) deal will create one of the world's largest banks, with combined value of £94bn and its headquarters in the Netherlands. | |
| The companies said about 12,800 jobs would be cut as a result of the merger, while a further 10,800 jobs would be moved to low-cost locations. | The companies said about 12,800 jobs would be cut as a result of the merger, while a further 10,800 jobs would be moved to low-cost locations. |
| ABN has also agreed to talk to a consortium headed by the Royal Bank of Scotland (RBS) about a rival offer. | ABN has also agreed to talk to a consortium headed by the Royal Bank of Scotland (RBS) about a rival offer. |
| Some analysts believe that RBS will offer a higher price for the Dutch bank, paving the way for a bidding war. | Some analysts believe that RBS will offer a higher price for the Dutch bank, paving the way for a bidding war. |
| The BBC's Business Editor Robert Peston said the Barclays offer faced major obstacles in the form of the rival consortium and the need to secure regulatory approval in 70 countries. | The BBC's Business Editor Robert Peston said the Barclays offer faced major obstacles in the form of the rival consortium and the need to secure regulatory approval in 70 countries. |
| Barclays and ABN stressed that they expect most of the cuts to their 217,000 workforce to be achieved through natural wastage. | Barclays and ABN stressed that they expect most of the cuts to their 217,000 workforce to be achieved through natural wastage. |
| 'Unique opportunity' | 'Unique opportunity' |
| Barclays was in exclusive negotiations with ABN Amro until Friday but the Dutch bank said it would open discussions with RBS on Monday. | Barclays was in exclusive negotiations with ABN Amro until Friday but the Dutch bank said it would open discussions with RBS on Monday. |
| I think Barclays may have played their hand already David Cumming, Standard Life Investments Barclays' share price | I think Barclays may have played their hand already David Cumming, Standard Life Investments Barclays' share price |
| Royal Bank's partners include the Spanish bank Group de Santander, which owns Britain's Abbey bank, and the Belgian bank Fortis. | Royal Bank's partners include the Spanish bank Group de Santander, which owns Britain's Abbey bank, and the Belgian bank Fortis. |
| Barclays chief executive John Varley - who would head the combined business - described the deal as a "unique opportunity". | Barclays chief executive John Varley - who would head the combined business - described the deal as a "unique opportunity". |
| "The proposed merger will significantly enhance stand-alone product development capabilities and distribution," he said. | "The proposed merger will significantly enhance stand-alone product development capabilities and distribution," he said. |
| "Our combined geographic reach will ensure exposure to both developed and high-growth developing economies." | "Our combined geographic reach will ensure exposure to both developed and high-growth developing economies." |
| PROPOSED NEW COMPANY 47 million customers27 million credit card holders217,000 staffSales of £94bnBritish firmHeadquartered in Amsterdam | PROPOSED NEW COMPANY 47 million customers27 million credit card holders217,000 staffSales of £94bnBritish firmHeadquartered in Amsterdam |
| The enlarged group would have 47 million customers, including 27 million credit card holders. | The enlarged group would have 47 million customers, including 27 million credit card holders. |
| The proposed deal, which must be approved by regulators and shareholders of both firms, would see Barclays shareholders owning 52% of the enlarged Barclays Group and ABN Amro investors owning the remainder. | The proposed deal, which must be approved by regulators and shareholders of both firms, would see Barclays shareholders owning 52% of the enlarged Barclays Group and ABN Amro investors owning the remainder. |
| Barclays would continue to be regulated and pay tax in the UK as part of the deal. | Barclays would continue to be regulated and pay tax in the UK as part of the deal. |
| Its shares rose 1.4% to 761 pence in early trading in London. | Its shares rose 1.4% to 761 pence in early trading in London. |
| Rival proposal | Rival proposal |
| One analyst said it was far from certain that the Barclays deal would be successful. | One analyst said it was far from certain that the Barclays deal would be successful. |
| There are major regulatory hurdles that have to be overcome Robert Peston, BBC business editor Read Robert's analysis in full "I think Barclays may have played their hand already," David Cumming from Standard Life Investments told the BBC. | There are major regulatory hurdles that have to be overcome Robert Peston, BBC business editor Read Robert's analysis in full "I think Barclays may have played their hand already," David Cumming from Standard Life Investments told the BBC. |
| Mr Cumming said the RBS consortium could offer a higher price because their proposal would guarantee more cost savings. | Mr Cumming said the RBS consortium could offer a higher price because their proposal would guarantee more cost savings. |
| "I expect them to be favourites in the end," he said. | "I expect them to be favourites in the end," he said. |
| Independent of the Barclays deal, ABN Amro has said it will sell LaSalle - its US business - to Bank of America for $21bn. | Independent of the Barclays deal, ABN Amro has said it will sell LaSalle - its US business - to Bank of America for $21bn. |