Royal Bank of Scotland shareholders approve ABN Amro deal

13 August 2007

Royal Bank of Scotland (RBS) shareholders have approved the bank's proposed takeover of Dutch rival ABN Amro.

The approval for the deal comes at a time when banks are experiencing steep falls in the price of shares amid escalating worries about exposure to the sub-prime mortgage market.

This development had led some analysts to propose that market turbulence might stymie the takeover.

However, a spokesman for RBS denied that ABN Amro had any significant exposure to the troubled US mortgage sector and remained viable.

RBS chairman Tom McKillop said: "We believe ABN is a very responsibly run bank and we have no reason to believe they have any undue exposure."

Meanwhile, Barclays Bank - which is vying with a consortium led by RBS for the takeover of the Dutch bank - is expected to receive approval from the Dutch Financial Ministry today.

The British bank's bid will be given a "declaration of no-objection" to approve the takeover, according to a report from the Reuters news agency.

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