ABN AMRO Bank N.V. and Rothschild Group have decided to discontinue ABN AMRO Rothschild, their international equity capital markets joint venture from 31 December, 2007.
ABN AMRO Rothschild was established in July 1996 as a joint vehicle for the execution of equity and equity-linked offerings for the clients of both banks. The business has consistently featured among the leading arrangers and underwriters of equity capital market transactions in Europe, Asia and Australia since its inception.
The decision comes after a review by both ABN AMRO and Rothschild of their equity capital markets business objectives following the acquisition of ABN AMRO by the consortium of the Royal Bank of Scotland Group (RBS), Fortis and Banco Santander.
ABN AMRO will continue its ECM product offering, consisting of structuring, execution and distribution, for both its own clients as well as RBS clients. Prospectively, ABN AMRO will be seeking much greater leverage of its equity and equity-linked product franchises, as it will integrate the bank’s equity capital markets team into RBS’ Global Banking and Markets division.
The Rothschild equity capital markets team will focus on reinforcing its position as a leading provider of independent advice and independent market intelligence together with execution support to issuers planning to raise equity capital via IPOs, placings and rights offerings or to tap the equity-linked markets.
“This is a logical time for the two banks to pursue their separate paths, although in doing so we part as firm friends. We are excited by the potential for furthering Rothschild’s franchise as trusted adviser in the equity capital markets and the new opportunities which our chosen model will create for us,” says David de Rothschild, chairman, Rothschild Group.
“The integration of ABN AMRO’s investment banking activities with RBS is a logical moment in time to re-evaluate our co-operation. We are fully committed to continue our equity capital markets product offering going forward.” says Wilco Jiskoot, member of the board, ABN AMRO.
“This is consistent with our prior decision to retain Hoare Govett. As a result of these decisions we will create a single, integrated, wholly owned, equities platform which will give us further opportunities to add value for customers worldwide,” adds Johnny Cameron, CEO, Corporate Markets at RBS.