RBS could lower ABN acceptance majority

28 September 2007

The Royal Bank of Scotland (RBS) led consortium that is on the brink of taking over Durch bank ABN Amro, could have to lower the level of acceptances needed to a simple majority.

According to Reuters the bid currently requires 80 per cent of ABN shareholders to accept its offer before it is declared unconditional.

Along with RBS, Spanish bank Santander and Belgian-Dutch outfit Fortis are poised to beat rivals Barclays to the takeover of ABN Amro with offer of $69 billion.

The offer is due to close on October 5th and the consortium is understood to need five days of notice if it decides to activate the clause in the contract that allows them to lower the minimum acceptance majority.

RBS has done a good job in organising its finances for the deal, according to the Financial Times.

The effects of the credit crisis and UK bank run have made the conditions even harder for a consortium based bid to succeed, and according to the newspaper they are the hardest to pull off.

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