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RBS gains support for ABN takeover

RBS gains support for ABN takeover

(9 October 2007 – Europe) The European consortium led by the Royal Bank of Scotland has gained enough shareholder support for the record $100 billion (A$111 billion) takeover of ABN Amro. The RBS led group, which also includes Belgian-Dutch bank Fortis and Spain's Banco Santander said that it had gained the backing of shareholders representing 86 percent of ABN shares.

The deal, which represents the largest acquisition in European banking history, paves the way for ABN Amro to be broken up.

The report has come after a lower offer by Barclays, which mostly included shares, fell through after not receiving enough shareholder support.

The RBS consortium issued a statement saying that the minimum acceptance condition had been satisfied, which ABN officials noted in response.

The takeover, which is expected to involve around 19,000 lost jobs, will see ABN split between the three consortium partners.

Santander is set to take over ABN’s Brazilian and Italian operations. Fortis will take the retail banking division based in the Benelux countries, while RBS would take cash from the recent sale of ABN’s US LaSalle bank and would also receive the institutional banking and Asian retail banking businesses.

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