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Abn Amro
Abn Amro
ABN AMRO
ABN AMRO
Private (Partly in temporary public ownership) 1991 Amsterdam, Netherlands Gerrit Zalm (CEO) Financial services Asset management Commercial banking Products Investment banking Private banking Retail banking Operating income 17 billion (2007)[1] Profit Total assets Owner(s) Employees Subsidiaries Website
ABN AMRO is a Dutch bank, currently owned by RFS Holdings B.V., a consortium of Royal Bank of Scotland Group, the Government of the Netherlands, and Banco Santander. The bank was created as the result of the 1990-91 merger between Amsterdam-Rotterdam (AMRO) Bank and ABN, whose history dated back to the founding of the Nederlandsche Handel-Maatschappij in 1824. Between 1991 and 2007, ABN AMRO was one of the largest banks in Europe and had operations in about 63 countries around the world. In the biggest banking takeover in history, a consortium comprising RBS, Fortis, and Banco Santander[4] acquired ABN AMRO in 2007.
Due to the 2008 financial crisis, the Dutch government nationalised the divisions owned by Fortis, while the UK government is now in effective control over the divisions allocated to RBS due to its financial bail-out of the Scottish bank. The process of integrating some of ABN AMRO's divisions into the new owners, and divesting others, continues.
Two days later the RBS-led consortium brought out their indicative offer, worth 72 billion, if ABN AMRO would abandon its sale of LaSalle Bank to Bank of America. During the shareholders' meeting the next day, a majority of about 68% of the shareholders voted in favour of the breakup as requested by TCI.[7] The sale of LaSalle was seen as obstructive by many: as a way of blocking the RBS bid, which hinged on further access to the US markets, in order to expand on the success of the group's existing American brands, Citizens Bank and Charter One. On May 3, 2007, the Dutch Investors' Association (Vereniging van Effectenbezitters), with the support of shareholders representing up to 20 percent of ABN's shares, took its case to the Dutch commercial court in Amsterdam, asking for an injunction against the LaSalle sale. The court ruled that the sale of LaSalle could not be viewed apart from the current merger talks of Barclays with ABN AMRO, and that the ABN AMRO shareholders should be able to approve other possible merger/acquisition candidates in a general shareholder meeting. However in July 2007, the Dutch Supreme Court ruled that Bank of America's acquisition of LaSalle Bank Corporation could proceed. Bank of America absorbed LaSalle effective October 1, 2007. On July 23 Barclays raised its offer for ABN AMRO to 67.5bn, after securing investments from the governments of China and Singapore, but it was still short of the RBS consortium's offer. Barclay's revised bid was worth 35.73 a share 4.3% more than its previous offer. The offer, which included 37% cash, remained below the 38.40a-share offer made the week before by the RFS consortium. Their revised offer didn't include an offer for La Salle bank, since ABN AMRO could proceed with the sale of that subsidiary to Bank of America. RBS would now settle for ABN's investment-banking division and its Asian Network. On July 30 ABN AMRO withdrew its support for Barclays offer which was lower than the offer from the group led by RBS. While the Barclays offer matched ABN AMROs strategic vision, the board couldnt recommend it from a financial point of view. The US$98.3bn bid from RBS, Fortis and Banco Santander was 9.8% higher than Barclays offer. Barclays Bank withdrew its bid for ABN AMRO on 5 October, clearing the way for the RBS-led consortium's bid to go through, along with its planned dismemberment of ABN AMRO. Fortis would get ABN AMRO's Dutch and Belgian operations, Banco Santander would get Banco Real in Brazil, and Banca Antonveneta in Italy and RBS would get ABN AMRO's wholesale division and all other operations, including those in Asia. On October 9, the RFS consortium led by Royal Bank of Scotland, bidding for control of ABN AMRO, formally declared victory after shareholders, representing 86 percent of the Dutch banks shares, accepted the RFS groups 70bn offer. This level of acceptance cleared the way for the consortium to take formal control. The group declared its offer unconditional on October 10, when Fortis completed its 13bn rights issue. Thus the financing required for the groups 38-a-share offer, which included 35.60 in cash, was
realised. Rijkman Groenink, Chairman of the Managing Board of ABN AMRO, who heavily backed the Barclays offer, decided that he would step down.[8]
Fortis
Further information: Fortis (finance)#ABN AMRO and its aftermath On July 11, 2008, the CEO of Fortis, Jean Votron, stepped down after the ABN AMRO deal had depleted Fortis' capital.[10][11] The total worth of Fortis, as reflected by its stock value, was at that time a third of what it had been before the acquisition, and just under the value it had paid merely for the Benelux activities of ABN AMRO.[12] Fortis announced in September 2008 that it intended to sell its stake in RFS Holdings, which includes all activities that have not been transferred yet to Fortis (i.e. everything except Asset Management).[13]
Goldman Sachs, AlpInvest Partners and CPP for $1.5 billion through a private equity secondary market transaction.[14][15]
18.280mn 18.793mn 19.793mn 23.215mn 27.641mn 4.719mn 5.848mn 6.104mn 6.705mn 6.360mn
105,000
105,439
105,918
98,080
135,378
Offices
ABN AMRO