Barclays losing ABN AMRO deal
Share Now on:
Barclays losing ABN AMRO deal
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.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
