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RBS bank offer 'snubbed' by ABN RBS bank offer 'snubbed' by ABN
(about 2 hours later)
ABN Amro has snubbed a $24.5bn (£12bn) bid for its US business from a group led by the Royal Bank of Scotland. A consortium led by the Royal Bank of Scotland has made a $96.4bn (£48.2bn) hostile takeover bid for ABN Amro, topping a rival offer by Barclays bank.
Although the final decision on whether to accept the LaSalle bid rests with ABN shareholders, the bank said it was inferior to one from Bank of America. ABN said the bid included a $24.5bn offer for its US business, LaSalle.
This marks the latest twist in an increasingly bitter takeover battle for ABN between the RBS group and Barclays. Although a decision on the offer will rest with ABN shareholders, the Dutch bank said the LaSalle bid was inferior to a rival one from Bank of America.
A Dutch court blocked ABN's plan to sell LaSalle to Bank of America for $21bn, opening the door to RBS. A court in the Netherlands last week blocked ABN's plan to sell LaSalle to Bank of America for $21bn.
The sell-off of LaSalle is a key factor in ABN's planned $90bn merger with Britain's Barclays bank.
The takeover battle for the Netherlands' biggest bank has become mired in legal wrangling.
The BBC's Business Editor Robert Peston said it would be up to ABN's shareholders to decide which bid they favoured.
'Bid risks''Bid risks'
The sell-off of LaSalle is a key factor in ABN's planned $90bn merger with Barclays.
The Royal Bank of Scotland consortium, which also includes Spain's Santander and Belgian-Dutch bank Fortis, wants to retain LaSalle as part of its planned $98bn bid for ABN.
The considered view of the managing board is that the acquisition proposal for LaSalle did not constitute a superior proposal ABN AmroThe considered view of the managing board is that the acquisition proposal for LaSalle did not constitute a superior proposal ABN Amro
However, ABN said RBS's position that its bid for the entire company was conditional on the LaSalle deal proceeding was unacceptable. The Royal Bank of Scotland consortium, which also includes Spain's Santander and Belgian-Dutch bank Fortis, has said the acquisition of LaSalle is a key component of its overall offer for ABN.
However, ABN said Royal Bank of Scotland's position that its bid for the entire company was conditional on the LaSalle deal going ahead was unacceptable.
"The considered view of the managing board is that the acquisition proposal for LaSalle did not constitute a superior proposal as a result of the uncertainty and execution risks," the Dutch bank said in a statement."The considered view of the managing board is that the acquisition proposal for LaSalle did not constitute a superior proposal as a result of the uncertainty and execution risks," the Dutch bank said in a statement.
It added that it had not received any evidence of how the RBS group proposed to fund its proposed acquisition of ABN despite repeated requests. It added that it had not received any evidence of how the Royal Bank of Scotland group proposed to fund its proposed acquisition of ABN, despite repeated requests.
The rival LaSalle bids will now be decided upon by ABN shareholders at forthcoming extraordinary general meeting. The rival LaSalle bids will now be decided upon by ABN shareholders at a forthcoming extraordinary general meeting.
Legal wrangling In a statement, the Royal Bank of Scotland consortium said its offer for LaSalle was higher than its rival's.
"The banks considered their proposal to be superior under the terms of the contract between ABN Amro and Bank of America," it said.
Legal battle
ABN Amro's board backs a merger with Barclays bank
Last week's decision by a Dutch court that ABN could not go ahead with the sale of LaSalle to Bank of America without first putting the decision to a vote by shareholders threw the whole takeover battle into confusion.Last week's decision by a Dutch court that ABN could not go ahead with the sale of LaSalle to Bank of America without first putting the decision to a vote by shareholders threw the whole takeover battle into confusion.
Bank of America has said it plans to sue ABN as a result of the ruling.Bank of America has said it plans to sue ABN as a result of the ruling.
The Royal Bank of Scotland consortium eventually plans to break up ABN if it wins control of the Dutch bank, while Barclays has pledged to shift the enlarged group's headquarters to Amsterdam if its bid is successful.The Royal Bank of Scotland consortium eventually plans to break up ABN if it wins control of the Dutch bank, while Barclays has pledged to shift the enlarged group's headquarters to Amsterdam if its bid is successful.
The sale of ABN Amro was sparked by a campaign by the Children's Investment Fund, which wanted the Dutch bank to break itself up to maximise shareholder value.The sale of ABN Amro was sparked by a campaign by the Children's Investment Fund, which wanted the Dutch bank to break itself up to maximise shareholder value.