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| Barclays agrees £45bn Dutch deal | Barclays agrees £45bn Dutch deal |
| (about 2 hours 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 a total 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. |
| The bank's shares fell 1.3% in morning trading in London after the terms of the deal were published while RBS shares slid 1.1%. | |
| 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 could be a spate of cross border takeovers within Europe 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. |