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{{Infobox_Company | {{Infobox_Company |
company_name = ABN AMRO Holding N.V. | company_name = ABN AMRO Holding N.V. |
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company_slogan = Making more possible | company_slogan = Making more possible |
location = ], the ] | location = ], the ] |
key_people = Mark Fisher (CEO) | key_people = ] (CEO), ] (nominated CEO) |
products = ] <br/> ]ing <br/> ]ing <br/> ]<br/> ] | products = ] <br/> ]ing <br/> ]ing <br/> ]<br/> ] |
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'''ABN AMRO''' ({{Euronext|AAB}}, {{nyse|ABN}}) was in the period of 1998 till 2007 one of the largest ]s in ] and had operations in about 63 countries around the world. Its history dated back to ]. A consortium of three European banks, ], ] and ], announced on October 8, 2007, that an offer for 86% of outstanding ABN AMRO stock has been accepted, making way for the largest ever bank takeover in history.<ref>{{cite news | title = RBS-led group says gets 86 pct of ABN shares | publisher = Reuters | date = ]}}</ref> '''ABN AMRO''' ({{Euronext|AAB}}, {{nyse|ABN}}) was in the period of 1998 till 2007 one of the largest ]s in ] and had operations in about 63 countries around the world. Its history dated back to ]. A consortium of three European banks, ], ] and ], announced on October 8, 2007, that an offer for 86% of outstanding ABN AMRO stock has been accepted, making way for the largest ever bank takeover in history.<ref>{{cite news | title = RBS-led group says gets 86 pct of ABN shares | publisher = Reuters | date = ]}}</ref>


ABN AMRO is listed on ] and the ]. It was part of the ], until October 11, 2007. It was removed from the ] index on October 12, 2007. ABN AMRO is listed on ] and the ]. It was part of the ], until October 11, 2007. It was removed from the ] index on October 12, 2007. On November 1, an extraordinary shareholder meeting will be held, to change the bank's management.

Revision as of 10:29, 17 October 2007

ABN AMRO Holding N.V.
File:ABN AMRO.png
Company typePublic (Euronext: AAB, NYSE: ABN)
IndustryFinancial services
Founded1991
HeadquartersAmsterdam, the Netherlands
Key peopleRijkman Groenink (CEO), Mark Fisher (nominated CEO)
ProductsAsset management
Commercial banking
Investment banking
Private banking
Retail banking
RevenueIncrease €19.827 billion (2005)
Operating income8,618,000,000 Euro (2023) Edit this on Wikidata
Net income2,697,000,000 Euro Edit this on Wikidata
Total assets369,970,000,000 Euro (2023) Edit this on Wikidata
Number of employees105,000
SubsidiariesABN AMRO Bank N.V
Websitewww.abnamro.com

ABN AMRO (Euronext: AAB, NYSE: ABN) was in the period of 1998 till 2007 one of the largest banks in Europe and had operations in about 63 countries around the world. Its history dated back to 1824. A consortium of three European banks, Royal Bank of Scotland Group, Fortis and Banco Santander, announced on October 8, 2007, that an offer for 86% of outstanding ABN AMRO stock has been accepted, making way for the largest ever bank takeover in history.

ABN AMRO is listed on Euronext Amsterdam and the New York Stock Exchange. It was part of the AEX index, until October 11, 2007. It was removed from the Euronext 100 index on October 12, 2007. On November 1, an extraordinary shareholder meeting will be held, to change the bank's management.


Build up to acquisition

ABN AMRO had come to a crossroads in the beginning of 2007. The bank had still not come close to their own target of being in the top 5 of their peer group measured on ROE, a target that was set in 2000 by the then just appointed CEO Rijkman Groenink. From 2000 till 2006, the ABN AMRO stock price had remained stagnant.

The financial results for the FY 06 added to concerns about the bank's future. Operating expenses increased at a greater rate than operating revenue reflecting greater operating results difficulties. The efficiency ratio deteriorated further to 69.9%. Non performing loans increased considerably year on year by 192%. Net profits were only boosted by sustained asset sales.

There had been some calls over the last couple of years for ABN AMRO to break up, merge or to be acquired. On February 21 2007, these calls became very concrete, when the TCI hedge fund asked the Chairman of the Supervisory Board to actively investigate a merger, acquisition or break up of ABN AMRO, stating that the current stock price didn't reflect the true value of the underlying assets. TCI asked the chairman to put their request on the agenda of the annual shareholders meeting of April 2007.

Events accelerated when on March 20 2007, Barclays and ABN AMRO both confirmed they were in exclusive talks about a possible merger. On March 28 2007, ABN AMRO published the agenda for the shareholding meeting of 2007. It included all items requested by TCI, but with the recommendation not to follow the request for a break up of the company.

However, on April 13 2007, Royal Bank of Scotland contacted ABN AMRO to propose a deal in which a consortium of banks including RBS, Fortis and Banco Santander (now Banco Santander) will jointly bid for ABN AMRO and thereafter, break up the different divisions of the company. According to the proposed deal, RBS would takeover ABN's Chicago operations, LaSalle, and possibly ABN's wholesale operations while Banco Santander would take the Brazilian operations and Fortis, the Dutch operations.

On April 23 2007, ABN AMRO and Barclays announced their proposed acquisition of ABN AMRO. The deal was valued at €67 billion. Part of the deal was the sale of the LaSalle Bank to Bank of America for €21 billion.

On April 25 2007 the RBS led consortium brought out their indicative offer worth €72 Billion, if ABN AMRO would abandon its sale of LaSalle Bank to Bank of America. During the Shareholders meeting the next day a majority of about 68% of the shareholders voted in favour of the break up as requested by TCI.

The sale of LaSalle was seen as obstructive by many as a way of blocking the RBS bid which hinges on further access to the US markets to expand on the success of the groups existing American brand, Citizens Bank. On May 3 2007 the Dutch investor group VEB, with the support of shareholders representing up to 20 percent of ABN's shares, took its case to the Dutch commercial court in Amsterdam, asking for an injunction against the LaSalle sale. The court ruled on May 3, 2007, that the sale of LaSalle could not be viewed apart from the current merger talks of Barclays with ABN AMRO, and that the ABN AMRO shareholders should be able to approve other possible merger/acquisition candidates in a general shareholder meeting. However, In July 2007, the Dutch Supreme Court ruled that Bank of America's acquisition of LaSalle Bank Corporation could proceed. Bank of America absorbed LaSalle effective October 1 2007.

On July 23 2007, Barclays raised its offer for ABN AMRO to EUR 67.5bn after securing investments from the governments of China and Singapore, reports Bloomberg but still short of the RBS Consortium offer. The UK bank’s revised bid is worth EUR 35.73 a share, it said today, 4.3% more than its previous offer. The offer, which includes 37% cash, remains below the EUR 38.40-a-share offer made the week before by Royal Bank of Scotland Group Plc, Banco Santander SA, and Fortis. Their revised offer didn't include an offer for La Salle bank, since ABN AMRO could proceed with the sale of that subsidiary to Bank of America. RBS would now settle for ABN's investment banking division and its Asian Network. China Development Bank will invest EUR 2.2bn in Barclays, and a further EUR 7.6bn if the bid for ABN AMRO succeeds. Singapore's Temasek Holdings Pte, the city-state's investment arm, will invest EUR 1.4bn initially, and an additional EUR 2.2bn upon the purchase of ABN AMRO.

On July 30 2007, ABN AMRO withdrew its support for Barclays’ offer which is lower than the offer by the group led by RBS. While the Barclays offer matches ABN AMRO’s “strategic vision”, the board can’t recommend it from “a financial point of view”, the Dutch bank said. The US$98.3bn bid from RBS, Fortis and Banco Santander was 9.8% higher than Barclays’ offer. On October 5th, 2007 Barclays bank withdrew their bid for ABN AMRO, clearing the way for the RBS-led consortia's bid to go through, with its planned dismemberment of ABN AMRO. Fortis will get ABN AMRO's Dutch and Belgian operations, Banco Santander will get Banco Real in Brazil, and Banca Antonveneta in Italy, and RBS will get ABN AMRO's wholesale division and all other operations, including those in India and the Far East.

On October 9 2007, The Royal Bank of Scotland-led consortium bidding for control of ABN Amro on Monday formally declared victory after shareholders representing 86 per cent of the Dutch bank’s shares accepted the group’s €70bn (£48bn) offer. The level of acceptances clears the way for the consortium, which includes Santander of Spain and Fortis, the Belgo-Dutch group, to take formal control of ABN when its offer closes later this month.The group declared its offer unconditional on 10 October 2007 when Fortis completed its €13bn rights issue. This completes the financing required for the group’s €38-a-share offer, which includes €35.60 in cash. Rijkman Groenink Chairman of the Managing Board of ABN AMRO who heavily backed the Barclays offer has decided that he will step down.

Financial Data in euro Millions
Years 2002 2003 2004 2005 2006
Sales net of interest 18 280 18 793 19 793 23 215 27 641
Ebitda 4 719 5 848 6 104 6 705 6 360
Net Result Share of the group 2 267 3 161 4 109 4 443 4 780
Staff 105 000 105 439 105 918 98 080 135 378
Source:'OpesC'

Business units

The business units of ABN AMRO are currently organised by regions:

  • The Netherlands
  • Europe (excluding the Netherlands)
  • North America
  • Latin America
  • Asia Pacific

Some of the specialty products and clients of ABN AMRO Bank have a global presence:

  • Private Clients
  • Global Clients
  • Global Markets
  • Transaction Banking
  • Consumer Banking
  • Asset Management

Further, the support functions of ABN AMRO are divided into two global business units:

  • Group Functions
  • Services

ABN AMRO ranks eighth in Europe and 13th in the world based on total assets, with more than 4,500 branches in 53 countries, a staff of over 110,000 full-time equivalents and total assets of €999 billion (as of September 30 2006).

The bank has developed a strategy of having three home markets: The Netherlands, the United States, and Brazil. The U.S. commercial banking operations of ABN AMRO consist of LaSalle Bank in Chicago, Illinois and LaSalle Bank Midwest in Detroit, Michigan which operate under the name LaSalle Bank Corporation. LaSalle Bank Midwest is the former Standard Federal Bank, which changed its name on September 12 2005. ABN AMRO also used to operate ABN AMRO Mortgage Group, one of the leading mortgage servicing companies in the US, but in January 2007 it sold this business to Citigroup. In Brazil, ABN AMRO's subsidiary is Banco Real. Banco Real recently completed an acquisition of Sudameris, a peer bank in the Brazilian market.

In 2005 ABN AMRO acquired Banca Antonveneta of Italy, this effectively gave it a fourth home market. Antonveneta had been a cooperation partner for some years and has a similar client base to ABN AMRO.

In March 2007 ABN AMRO announced that it was bidding US$227mn for a 93.4% stake in Pakistan's Prime Bank, and would tender for the remainder. Prime Bank is Pakistan's 19th largest bank and has 52 billion rupees worth of assets and 41 billion rupees in deposits. It has a network of 69 branches in 25 Pakistani cities. The acquisition, when combined with ABN AMRO's existing operations, would make ABN AMRO the second largest foreign bank in Pakistan (after the Standard Chartered Bank, and put it among the 10 largest banks in the country.

Offices

Other investments and sponsors

  • ABN AMRO sponsors AFC Ajax and owns 2.7% of a joint stock share in AS Roma.
  • ABN AMRO sponsors a number of racing sailboats including two entries in the Volvo Ocean Race. On May 18 2006 one of the crew Hans Horrevoets, 32, died after being swept overboard in high seas. Although the boat turned around and picked him up he never regained consciousness, and died. The ABN AMRO-sponsored "ABN AMRO ONE" won the Volvo Ocean Race 2006
  • ABN AMRO is the founding partner of NEWS, the platform for Dutch students abroad.

See also

References

  1. "RBS-led group says gets 86 pct of ABN shares". Reuters. 2007-10-08. {{cite news}}: Check date values in: |date= (help)
  2. http://news.bbc.co.uk/1/hi/business/6469417.stm
  3. http://news.bbc.co.uk/1/hi/business/6582507.stm
  4. http://news.bbc.co.uk/1/hi/business/6590741.stm
  5. http://news.bbc.co.uk/2/hi/business/7029297.stm
  6. http://news.bbc.co.uk/2/hi/business/6465651.stm
  7. "A.S. Roma SpA Ownership". Consob. 8 June 2007. {{cite news}}: Check date values in: |date= (help)

External links

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