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| Barclays abandons ABN Amro offer | Barclays abandons ABN Amro offer |
| (9 minutes later) | |
| Barclays has dropped its bid for ABN Amro, clearing the way for a group led by the Royal Bank of Scotland to buy the Dutch bank. | Barclays has dropped its bid for ABN Amro, clearing the way for a group led by the Royal Bank of Scotland to buy the Dutch bank. |
| The bank confirmed it would withdraw from the bid battle after it failed to win the backing of shareholders controlling 80% of ABN's shares. | The bank confirmed it would withdraw from the bid battle after it failed to win the backing of shareholders controlling 80% of ABN's shares. |
| Experts believed the 71bn euro (£49bn; $98.5bn) RBS offer would prevail, since it has a much larger cash element. | Experts believed the 71bn euro (£49bn; $98.5bn) RBS offer would prevail, since it has a much larger cash element. |
| Despite the setback, Barclays said its business still had "strong momentum". | Despite the setback, Barclays said its business still had "strong momentum". |
| Bid value | Bid value |
| I have complete confidence in the independent future of Barclays John Varley, Barclays chief executive See Barclays shares See RBS shares | I have complete confidence in the independent future of Barclays John Varley, Barclays chief executive See Barclays shares See RBS shares |
| Its chief executive John Varley said he was "disappointed" by the outcome but upbeat about the company's future. | Its chief executive John Varley said he was "disappointed" by the outcome but upbeat about the company's future. |
| "I have complete confidence in the independent future of Barclays," he said. | "I have complete confidence in the independent future of Barclays," he said. |
| Nevertheless, the failure to pull off the deal - Europe's largest banking takeover - will inevitably raise question marks about Barclays' future strategy. | Nevertheless, the failure to pull off the deal - Europe's largest banking takeover - will inevitably raise question marks about Barclays' future strategy. |
| Barclays' shares rose marginally after the widely-expected announcement while shares in RBS fell on concerns about the price it is paying to conclude the deal. | Barclays' shares rose marginally after the widely-expected announcement while shares in RBS fell on concerns about the price it is paying to conclude the deal. |
| The deadline for ABN investors to accept or reject the RBS-led bid passes on Friday and the bank is expected to reveal in the next few days what level of support it has received. | |
| However, analysts now believe its victory is all but assured. | However, analysts now believe its victory is all but assured. |
| Royal Bank of Scotland is set to emerge victorious | |
| The value of Barclays' bid, which was predominantly share-based, fell in recent months as global credit worries dented the market value of banking companies. | |
| Its offer was worth more than 10bn euros less than the RBS led bid. | Its offer was worth more than 10bn euros less than the RBS led bid. |
| ABN's management initially threw its weight behind the Barclays bid, but later withdrew its support, calling for a "level-playing field" between both bidders. | ABN's management initially threw its weight behind the Barclays bid, but later withdrew its support, calling for a "level-playing field" between both bidders. |
| The RBS consortium includes Belgian-Dutch bank Fortis and Spanish firm Grupo Santander. | The RBS consortium includes Belgian-Dutch bank Fortis and Spanish firm Grupo Santander. |
| Price concerns | Price concerns |
| Shareholders in Barclays and Royal Bank of Scotland both backed their respective bids. | Shareholders in Barclays and Royal Bank of Scotland both backed their respective bids. |
| But some investors are known to be worried about the huge expense of the deal at a time when the outlook for global financial markets is uncertain. | But some investors are known to be worried about the huge expense of the deal at a time when the outlook for global financial markets is uncertain. |
| In the event of the RBS bid winning out, it is expected that ABN's business will be split up. | In the event of the RBS bid winning out, it is expected that ABN's business will be split up. |
| The bid battle has dragged on for most of the year after a legal row over the fate of LaSalle, ABN's US subsidiary. | The bid battle has dragged on for most of the year after a legal row over the fate of LaSalle, ABN's US subsidiary. |
| ABN's decision to sell LaSalle to Bank of America was challenged by a Dutch shareholders' group, but its action was upheld by a Dutch court. | ABN's decision to sell LaSalle to Bank of America was challenged by a Dutch shareholders' group, but its action was upheld by a Dutch court. |