Shareholder boost for ABN Amro bidder

Royal Bank of Scotland moved a step closer to clinching the takeover of Dutch bank ABN Amro today after bidding partner Fortis won vital shareholder approval for the deal.

Belgo-Dutch bank Fortis won overwhelming support from shareholders for the offer and a crucial £8.7bn (€13bn) rights issue needed to fund its share of the consortium’s €71.1bn bid.

Investors gave the proposals the thumbs-up at two investor meetings held in Brussels and its Dutch headquarters in Utrecht, as Fortis has primary share listings in both Belgium and the Netherlands.

More than 90% of shareholders voted in support of the deal and rights issue at both meetings. In Brussels, 94% voted in favour of the offer and 93% for the rights issue, while in Utrecht both moves were supported by 96% of shareholders.

Fellow consortium bidder, Spain’s Santander, has already secured investor backing, although RBS shareholders are not set to vote on the proposed takeover until Friday.

Rival suitor Barclays, which tabled its formal €67.5bn offer earlier today, is also yet to get shareholder approval, with voting due to take place in mid-September.

Barclays’ offer will now be sent to ABN’s estimated 90,000 shareholders ahead of a special meeting on September 20.

The period for acceptances of the Barclays offer begins tomorrow and will end on October 4 at 3pm Amsterdam time.

Barclays also received EU clearance for its bid for the Dutch bank today, although it suffered a setback last week when ABN failed to recommend its new offer.

Tensions have since been running high between the groups and the RBS consortium.

ABN chief executive Rijkman Groenink was reported in the Dutch media saying Fortis shareholders should vote against the deal to buy the Dutch bank, although ABN issued a statement today saying that he had been misquoted.

The joint statement from ABN and the RBS-led bidding team added that they had “agreed to continue a constructive dialogue to resolve any outstanding questions” and “maintain a level playing field”.

If Barclays is successful in its takeover attempt, the British group will become the world’s fifth largest bank.

It does not plan to break up the merged group and has said that, while the enlarged bank will be led from the UK, its headquarters would be moved to the Netherlands.

Meanwhile the RBS consortium has said it would break up ABN if it were to win the takeover tussle.

If either bidder succeeds, the deal would make history as the biggest ever financial services transaction.