No more ABN-AMRO
So it's bye-bye to the happy cuddly Dutch banking group that has been so good to @ over the years - and is currently home to at least 50 trainees (anyone have the exact number?)
Barclay's are paying $91 billion to "merge" with ABN (its a takeover in everything but name) - and reports are saying there will be over 20,000 jobs cut from the merged company, which will keep the Barclays name, and be headquartered in Amsterdam. About 10,000 jobs are set to be offshored to India, and another 10,000 cut altogether.
There must be a bunch of nomads in ABN - any insider goss on the word around the water cooler? (and yes, here is an occasion where anonymous comments are absolutely cool with me :)
Barclay's are paying $91 billion to "merge" with ABN (its a takeover in everything but name) - and reports are saying there will be over 20,000 jobs cut from the merged company, which will keep the Barclays name, and be headquartered in Amsterdam. About 10,000 jobs are set to be offshored to India, and another 10,000 cut altogether.
There must be a bunch of nomads in ABN - any insider goss on the word around the water cooler? (and yes, here is an occasion where anonymous comments are absolutely cool with me :)
posted by Tom Gara at 10:36 AM
4 Comments:
The deal is far from complete and may be voided by another bidder. That's what most people expect at least. RBS, Fortis, Santander have joined together to propose a bid that would involve splitting ABN AMRO, selling of US operations...blah blah, basically involves more saving costs for a merger, in this case would no longer be a merger but a straight up acquisition.
Hopefully the most of the departments trainees are at can float...
ABN trainees...any public insights?
6:25 PM
When 2 banks hire 10 other global investment banks to preside on a deal of this scale, they make sure there are enough covenants in place to repel hostile bids. RBS will mostlikely announce today at its AGM that it IS NOT going ahead with the consortium's plans to bid. RBS Paying higher price for LaSalle - the US arm of ABN AMRO - that is being sold to Bank of America for USD 21 Bln in cash will only finance the Barclays takeover of ABN AMRO and make it more attractive for it's shareholders, RBS has led the rival consortium primarily for La Salle. ABN AMRO management is now busy with staff Town Halls and the new organization looks pretty exciting to be honest.
The challenge with splitting ABN AMRO and not being taken over completely in most geogrpahies destroys the value of the group, requires additional capital as balance sheets of it's parts start to look weaker and has no support from European Staff Council. It will be very difficult to implement it. Already getting regulatory approvals for 'new Barclays' in 70 countries is looking nighmarish!
Mother Merill is advising RBS and for all the due diligence and prudence, they may decide to hold on for now and look at other Banks that will join the 'end game' battle that this deal will trigger in Global / European Banking.
Uni Credit and Societe Generale are said to be starting discussions and Deutsche Bank will look for suitors as well in coming months if not years.
Bets are still on, and it's still anyone's guess.
PS: All the above is information in public domain and not in breach of any banking secrecy etc.
4:11 AM
yikes vaibhav - you speak too soon....zing!
"LONDON (Reuters) -- A trio of banks led by Royal Bank of Scotland proposed a ?72 billion ($98 billion) bid for Dutch bank ABN AMRO, threatening to thwart an agreed takeover by British rival Barclays .
The RBS group, which also includes Spain's Santander and Dutch-Belgian bank Fortis (Charts), said Wednesday it planned to offer ?39 a share for ABN AMRO (Charts), made up of 70 percent in cash and 30 percent in RBS shares.
That would beat the all-share bid announced Monday by Barclays (Charts) - worth about ?64.3 billion, or ?34.5 per share, at current share prices - and could trigger the world's biggest ever bank takeover battle"
10:46 AM
exactly!.
well well.. so it is.
12:29 PM
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