ABN Amro advises shareholders against break-up

28 March 2007

ABN Amro has recommended that its shareholders opt not to follow The Children's Institute's (TCI) proposals to break-up the bank when they are asked to vote on the company's future direction.

Shareholders will be given the option to decide ABN Amro's strategy on April 26th at a meeting when they will be asked to choose between an $80 billion merger offer from Barclays Bank, TCI's proposals that the bank sells off some of its interests and a possible rival merger bid from Citigroup.

However, in a statement ABN suggested that it favours Barclays' bid rather than TCI's proposals: "We do not believe the interests of our shareholders would be best served by the mere short-term cash generation actions embodied in the proposals that TCI has put forward for consideration.

"The managing board and the supervisory board believe that a merger with Barclays may provide the opportunity to create additional value, and we are excited about the potential opportunities that a merger with Barclays could offer."

Should the Barclays offer be accepted it would represent the largest-ever cross-border transaction and would create a company with 220,000 staff and 47 million customers worldwide.

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