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ABN AMRO Holding N.V.
Private (Partly in temporary public
Mark Fisher (CEO)
▲ €17 billion (2007)
▲ €10 billion (2007)
▼ €912 billion (June 2008)
Kingdom of the Netherlands - dutch
102,556 (end 2007)
ABN AMRO Bank N.V.
ABN AMRO is a Dutch bank, currently owned by RFS Holdings B.V., a consortium of Royal
Bank of Scotland Group, the Government of the Netherlands, and Banco Santander. The bank
was created as the result of the 1990-91 merger between Amsterdam-Rotterdam (AMRO) Bank
and ABN, whose history dated back to the founding of the Nederlandsche Handel-Maatschappij
Between 1991 and 2007, ABN AMRO was one of the largest banks in Europe and had
operations in about 63 countries around the world.
In the biggest banking takeover in history, a consortium comprising RBS, Fortis, and Banco
Santander acquired ABN AMRO in 2007.
Due to the 2008 financial crisis, the Dutch government nationalised the divisions owned by
Fortis, while the UK government is now in effective control over the divisions allocated to RBS
due to its financial bail-out of the Scottish bank. The process of integrating some of ABN
AMRO's divisions into the new owners, and divesting others, continues.
1 2007 acquisition of ABN AMRO
2 Impact of the 2008 Financial crisis on the acquisition
o 2.1 RBS
o 2.2 Fortis
3 AAC Capital Partners
4 Dutch government ownership
6 See also
8 External links
 2007 acquisition of ABN AMRO
ABN AMRO had come to a crossroads in the beginning of 2007. The bank had still not come
close to its own target of having an ROE that would put it among the top 5 of its peer group, a
target that the CEO, Rijkman Groenink had set upon his appointment in 2000. From 2000 until
2006, ABN AMRO's stock price stagnated.
Financial results in 2006 added to concerns about the bank's future. Operating expenses
increased at a greater rate than operating revenue, and 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 prior couple of years, for ABN AMRO to break up, to
merge, or to be acquired. On February 21, 2007, the call came from the TCI hedge fund which
asked the Chairman of the Supervisory Board to actively investigate a merger, acquisition or
breakup 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 the British bank, Barclays and ABN AMRO both
confirmed they were in exclusive talks about a possible merger. On March 28, ABN AMRO
published the agenda for the shareholders' meeting of 2007. It included all items requested by
TCI, but with the recommendation not to follow the request for a breakup of the company.
However, on April 13, another British bank, the Royal Bank of Scotland (RBS) contacted ABN
AMRO to propose a deal in which a consortium of banks, including RBS, Belgium's Fortis, and
Spain's Banco Santander Central Hispano (now Banco Santander) would jointly bid for ABN
AMRO and thereafter break up the different divisions of the company between them. According
to the proposed deal, RBS would take over ABN's Chicago operations, LaSalle, and ABN's
wholesale operations; while Banco Santander would take the Brazilian operations and Fortis, the
On April 23 ABN AMRO and Barclays announced the proposed acquisition of ABN AMRO by
Barclays. The deal was valued at €67 billion. Part of the deal was the sale of LaSalle Bank to
Bank of America for €21 billion.
Two days later 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 breakup as requested by TCI.
The sale of LaSalle was seen as obstructive by many: as a way of blocking the RBS bid, which
hinged on further access to the US markets, in order to expand on the success of the group's
existing American brand, Citizens Bank. On May 3, 2007, the Dutch Investors' Association
(Vereniging van Effectenbezitters), 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 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 Barclays raised its offer for ABN AMRO to €67.5bn, after securing investments from
the governments of China and Singapore, but it was still short of the RBS consortium's offer.
Barclay's revised bid was worth €35.73 a share — 4.3% more than its previous offer. The offer,
which included 37% cash, remained below the €38.40-a-share offer made the week before by the
RFS consortium. 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.
On July 30 ABN AMRO withdrew its support for Barclays’ offer which was lower than the offer
from the group led by RBS. While the Barclays offer matched ABN AMRO’s “strategic vision,”
the board couldn’t recommend it from “a financial point of view.” The US$98.3bn bid from
RBS, Fortis and Banco Santander was 9.8% higher than Barclays’ offer.
Barclays Bank withdrew its bid for ABN AMRO on 5 October, clearing the way for the RBS-led
consortium's bid to go through, along with its planned dismemberment of ABN AMRO. Fortis
would get ABN AMRO's Dutch and Belgian operations, Banco Santander would get Banco Real
in Brazil, and Banca Antonveneta in Italy and RBS would get ABN AMRO's wholesale division
and all other operations, including those in Asia.
On October 9, the RFS consortium led by Royal Bank of Scotland, bidding for control of ABN
AMRO, formally declared victory after shareholders, representing 86 percent of the Dutch
bank’s shares, accepted the RFS group’s €70bn offer. This level of acceptance cleared the way
for the consortium to take formal control. The group declared its offer unconditional on October
10, when Fortis completed its €13bn rights issue. Thus the financing required for the group’s
€38-a-share offer, which included €35.60 in cash, was realised. Rijkman Groenink, Chairman of
the Managing Board of ABN AMRO, who heavily backed the Barclays offer, decided that he
would step down.
 Impact of the 2008 Financial crisis on the acquisition
Further information: Royal Bank of Scotland Group#2008-2009 financial crisis
On 22 April 2008 RBS announced the largest rights issue in British corporate history, which
aimed to raise £12billion in new capital to offset a writedown of £5.9billion resulting from the
bad investments and to shore up its reserves following the purchase of ABN AMRO.
On 13 October 2008, British Prime Minister Gordon Brown announced a UK Government
bailout of the financial system. The Treasury would infuse £37 billion ($64 billion, €47 billion)
of new capital into Royal Bank of Scotland Group Plc, Lloyds TSB and HBOS Plc, to avert
financial sector collapse. This resulted in a total government ownership in RBS of 58%.
As a consequence of this rescue the chief executive of the group Sir Fred Goodwin offered his
resignation, which was duly accepted.
In January 2009 it was announced that RBS had made a loss of £28bn of which £20bn was due
to ABN AMRO. At the same time the government converted their preference shares to
ordinary shares resulting in a 70% ownership of RBS.
Further information: Fortis (finance)#ABN AMRO and its aftermath
On July 11, 2008, the CEO of Fortis, Jean Votron, stepped down after the ABN AMRO deal had
depleted Fortis' capital. The total worth of Fortis, as reflected by its stock value, was at that
time a third of what it had been before the acquisition, and just under the value it had paid merely
for the Benelux activities of ABN AMRO.
Fortis announced in September 2008 that it intended to sell its stake in RFS Holdings, which
includes all activities that have not been transferred yet to Fortis (i.e. everything except Asset
 AAC Capital Partners
In 2008, ABN AMRO completed the sale of a portfolio of private equity interests in 32 European
companies managed by AAC Capital Partners to a consortium comprising Goldman Sachs,
AlpInvest Partners and CPP for $1.5 billion through a private equity secondary market
 Dutch government ownership
Continuing problems in the Fortis operations in the 2008 financial crisis led to the Dutch state
obtaining full control (for €16.8bn) of all Fortis operations in the Netherlands, including those
parts of ABN-AMRO then belonging to Fortis. The Dutch government and the De
Nederlandsche Bank president have announced the merger of Dutch Fortis and ABN AMRO
parts will proceed while the bank is in state ownership.
In January 2009, it was reported that shareholders in Belgian-based Fortis plan to file a lawsuit
against the Belgian government over its handling of the carve-up of the troubled financial
services group and are also considering a case against the Dutch government.
Years 2002 2003 2004 2005 2006
€18.280mn €18.793mn €19.793mn €23.215mn €27.641mn
Sales net of interest
€4.719mn €5.848mn €6.104mn €6.705mn €6.360mn
Net Result Share of the group €2.267mn €3.161mn €4.109mn €4.443mn €4.780mn
Staff 105,000 105,439 105,918 98,080 135,378
ABN AMRO in
ABN AMRO headquarters ABN AMRO Insurance ABN AMRO in Dubai
in Amsterdam headquarters in Zwolle Sydney
 See also
European Financial Services Roundtable
Vladimer Gurgenidze, Prime Minister of Georgia, former employee of ABN AMRO
1. ^ quot;2007 Full year resultsquot;.
2. ^ a b quot;2007 Annual Reportquot; (pdf). 7.
3. ^ quot;2008 Half year resultsquot; (pdf).
4. ^ quot;RBS-led group says gets 86% of ABN sharesquot;. Reuters. 2007-10-08.
5. ^ BBC NEWS | Business | Barclays in exclusive ABN talks
6. ^ BBC NEWS | Business | Barclays agrees £45bn Dutch deal
7. ^ BBC NEWS | Business | RBS woos ABN with £49bn bid plan
8. ^ BBC NEWS | Business | Barclays abandons ABN AMRO offer
9. ^ Banks shares crash on RBS £28bn loss
10. ^ Fortis Suffers ABN Pain - Forbes
11. ^ Mixed fortunes for the buyers of ABN AMRO - The Economist
12. ^ Fortis chief executive out; chairman now faces shareholder anger - International Herald Tribune
13. ^ Questions and Answers on the Fortis site
14. ^ quot;Goldman group snags ABN AMRO unit.quot; Pensions&Investments, August 12, 2008.
15. ^ Discount offered to offload ABN Amro's Secondaries
16. ^ It is likely that this new bank will continue to operate as 'ABN AMRO' because the assets of
ABN AMRO are much larger than the assets of Fortis. Announcement of the Dutch Ministry of
 External links
Wikimedia Commons has media related to: ABN AMRO
ABN AMRO website
ABN fined $17 million over loans
ABN Video and Audio on MarketWatch
Fortis Ousts Chief Votron After ABN AMRO Deal Depletes Capital
Fortis ABN AMRO sell-off in trouble
Was ABN the worst takeover deal ever?
Links to related articles
Royal Bank of Scotland Group
ABN AMRO · Adam & Company · Child & Co ·
Citizens Bank · Coutts & Co · Drummonds Bank ·
First Active · Isle of Man Bank · MINT · National
Westminster Bank · Royal Bank of Scotland · Royal
Bank of Scotland International · Tesco Personal
Finance · The One account · Ulster Bank · X-ite
Churchill Insurance · Devitt Insurance · Direct Line ·
Finsure · Green Flag · Jamjarcars · Lombard Direct ·
Insurance and Motoring:
Privilege · Tracker · UKI Partnerships
Angel Trains · BIBIT · Lynk · RBS Greenwich
Corporate and Payment Services:
Capital · Streamline · WorldPay
Annual Group Revenue: £28.0 billion GBP (▲16% FY 2006) · Employees: 135,000 ·
Stock Symbol: LSE: RBS · Website: http://www.rbs.com/
Financial services companies of the Netherlands
Fortis · ING Group · Rabobank · SNS Reaal
ABN Amro · Alex · ASN Bank · Amsterdam Trade
Bank · Bank Nederlandse Gemeenten · Binck · De
Lage Landen · Direktbank · DSB Bank · ELQ ·
Friesland Bank · Postbank · Sparck · Triodos Bank ·
Van Lanschot Bankiers
Bank Insinger de Beaufort · Fortis MeesPierson ·
Kempen & Co · Robeco · Schretlen & Co ·
Private banks & asset management
Staalbankiers · Theodoor Gilissen Bankiers · Oyens
& van Eeghen
Aegon · Achmea · Allianz · Atradius · AXA
Nederland · Cardif · Centraal Beheer · Conservatrix ·
Delta Lloyd · Eureko · De Goudse Verzekeringen ·
FBTO · Interpolis · Klaverblad Verzekeringen ·
Monuta · Nationale Nederlanden · Ohra · TVM ·
Univé · Uvit · VVAA · Zwitserleven
Azivo · AZVZ · CZ Groep · De Friesland · Menzis ·
ONVZ Zorgverzekeringen · PNO Ziektenkosten ·
Salland Verzekeringen · DSW Zorgverzekeringen ·
Zorg en Zekerheid
Major investment banks
ABN Amro · Banc of America Securities · Bank of Montreal · Barclays Capital · The
Blackstone Group · BNP Paribas · CIBC World Markets · Citigroup · CLSA · Credit Suisse ·
Deutsche Bank · Dresdner Kleinwort · Goldman Sachs · Houlihan Lokey · HSBC · JPMorgan
Chase · ING Bank · KBC Bank · Lazard · Macquarie Group · Merrill Lynch · Mizuho Corporate
Bank · Morgan Stanley · N M Rothschild & Sons · Nomura Securities · Oppenheimer & Co. ·
Piper Jaffray · Royal Bank of Scotland · RBC Capital Markets · Société Générale · Stifel
Nicolaus · UBS · Wachovia
Retrieved from quot;http://en.wikipedia.org/wiki/ABN_AMROquot;
Categories: Banks of the Netherlands | Multinational companies headquartered in the
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