Following is a letter sent to the Editor of the Financial Times:
Sir,
As time goes on, ABN-Amro shareholders may receive more and more choices and, most importantly, they appear to now have the right to vote on those choices ("Bitterness after RBS move to buy LaSalle stalls" Financial Times, May 8, 2007).
They have a bid for the whole group from Barclays, a bid for Bank La Salle by Bank of America and possible bids for both of these from the RBS-led consortium.
However, unless their management announces an extraordinary dividend to distribute the proceeds of the Bank La Salle deal, which their management has singularly failed to announce, shareholders should ignore what goes on with Bank La Salle.
In the absence of any dividend the funds received for this deal stay at ABN-Amro and none goes to the shareholders. As a result, all shareholders need to do is to review the bids received for the whole group. That is the only cash they will be seeing!
Onésimo Alvarez-Moro
See article:
Recriminations were flying yesterday between ABN Amro and a consortium led by Royal Bank of Scotland after talks about an €71bn ($97bn) offer for the Dutch lender broke down on Sunday night.
The decision by ABN Amro's management and supervisory boards not to accept a $24.5bn offer for the bank's US division, LaSalle, in effect ended the consortium's hopes of striking a friendly deal that would beat a rival takeover for ABN Amro by Barclays, the British bank.
The disagreement between the two sides hung on two critical issues. ABN Amro was unwilling to accept an offer for LaSalle that - while higher than the $21bn price it had already agreed with Bank of America - wasconditional on the consortium succeeding in its takeover of the entire Dutch bank.
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