ABN Amro on Monday indicated its continued support for a take-over bid by Barclays, even after the Dutch bank formally withdrew its recommendation for the agreed deal, The Financial Times reports.
Rijkman Groenink, chief executive, said it would have “looked a bit silly” for the bank to continue recommending Barclays’ bid, which is currently worth about 34.60 a share substantially below a 38.10-a-share break-up bid from a consortium led by Royal Bank of Scotland.
However, he said: “We continue to support the Barclays bid, but we will engage with both parties.”
Barclays last week sweetened its bid in an attempt to compete with the consortium’s offer, which is largely in cash. But the value of its cash-and-shares bid has been undermined by the broader stock market sell-off.
The consortium has not asked for ABN Amro to recommend its bid. Some executives believe a hostile bid would make it easier for the consortium to carry out the cost-cutting its members believe is necessary.