Barclays losing ABN AMRO deal
It seems Barclays is set to admit defeat in the battle for Dutch bank ABN AMRO, in light of a cash offer by rival Royal Bank of Scotland. Stephen Beard reports on a possible resolution.
Barclays sign (Getty Images)
More on Wall Street
TEXT OF STORY
Doug Krizner: It appears the British bank Barclays will admit defeat in the battle to takeover the Dutch bank ABN Amro. This banking deal has been dragging on for months. But as Stephen Beard reports, today there might be a resolution.
Stephen Beard: Barclays lost out because it was offering its own shares to buy ABN Amro. And as the subprime crisis unfolded during the summer, those shares fell sharply.
Meanwhile, the mostly cash offer from the rival bidder has looked increasingly tempting.
This may, however, be the best deal Barclays never did. They get a break fee worth more than $300 million. And they'll no longer be lumbering themselves with a large acquisition just as the banking business takes a turn for the worse.
The consortium led by the Royal Bank of Scotland now looks certain to clinch the deal. But buying ABN AMRO for top dollar at a time like this may well prove a mixed blessing.
In London, this is Stephen Beard for Marketplace.
