A consortium led by Royal Bank of Scotland PLC said today it will launch a hostile bid of euro71.1 billion (US$95.5 billion) for ABN Amro, topping a friendly offer from Barclays PLC and keeping up a struggle with Bank of America Corp. for control of the Dutch bank's U.S. arm. According to the Associated Press, the offer by the RBS group is for euro38.40 (US$51.59) per share of ABN Amro Holding NV, mostly in cash. It is at least 10 percent more than Barclays' all share offer worth euro34.69 (US$46.59) at current levels. ABN Amro's shares fell 0.6 percent to euro35.87 (US$48.19), suggesting investors have serious doubts about which deal will prevail. Either bid, if successful, would be the largest in the history of the financial industry. "We believe we have a particularly comprehensive strategic fit in all of the main markets in which ABN Amro is operating," RBS Chief Executive Fred Goodwin told investors at a conference in London, arguing that the consortium was a better fit than Barclays to invest in and expand ABN's businesses in the future. "We are tall and deep, and they are wide and thin," he said. -- SPA
