Rival bid for ABN Amro outprices Barclays

A consortium of banks led by Royal Bank of Scotland PLC today announced plans for a rival bid to Barclays PLC’s offer for ABN Amro NV, setting up one of the largest takeover battles in corporate history. ABN shareholders immediately pressured management to accept the RBS-led deal. Royal Bank of Scotland PLC, Spain’s Banco Santander Central Hispano SA and Belgian-Dutch bank Fortis NV said they would offer around $52.95 per share for ABN Amro, 70 per cent in cash and 30 per cent in RBS shares, valuing ABN Amro at roughly $98.1 billion. That is more than 10 per cent higher than Barclay’s all-share offer, worth around $86 billion at Barclays’ closing price Tuesday.