ABN Amro Holding (NYSE:ABN) shares moved up $0.55, or 1.11%, to $50.08 today after a consortium led by the Royal Bank of Scotland said it would go ahead with plans to launch a hostile bid for the company in a move aimed at breaking up the friendly existing bid by Barclay's Bank. "The banks continue to believe that their proposals offer materially
higher value for ABN Amro's shareholders and benefits to customers and
employees compared with the recommended offer from Barclays," the banks
said in a joint statement. Obviously, shareholders are also interested in seeing this new offer. The Children's Investment Fund - the activist hedge fund that
owns 2% of ABN Amro and originally called for the breakup - welcomed the
consortium's plan and described it as "compelling." Whether or not the board of directors agrees to review this new bid remains to be seen; however, this is definitely a stock to
keep an eye on in case a bidding war breaks out.
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