Barclays determined to complete ABN merger

British banking giant Barclays said today it was determined to see through its merger plans with Dutch rival ABN Amro, despite moves from a Royal Bank of Scotland led consortium to scupper the deal with a possible £49bn (€71.7bn) counterbid.

Barclays told shareholders at its annual general meeting in London that its merger aims were in "stark contrast" to the rival consortium's takeover plans, which it said were simply to break up the ABN group.

The comments came as RBS and its bidding partners, Spanish bank Santander and Fortis of Belgium, were scrutinising the ABN Amro accounts after the Dutch group agreed to open its books to the consortium late yesterday.

Barclays chairman Marcus Agius said: "What Barclays offers and what the consortium offers stand in stark contrast.

"On the one hand, a decision by the board of Barclays and ABN to build one of the best banks in the world. On the other, the deconstruction into heaven knows how many parts one of the biggest banks in Europe."

He added the group was "determined to proceed" with the deal, which would propel Barclays into a top five global bank and threaten RBS's position as the second largest banking group in the UK.

But there was no mention at the shareholder meeting of whether Barclays would be prepared to up its £45bn (€65.8bn) agreed all-share offer for ABN Amro to fend off the RBS-led group.

The rival suitors have tabled an indicative €39-per-share offer valuing ABN at £49bn (€71.7bn), 70% of which would be paid cash and the rest in shares.