Barclays has formally launched its 65 billion euro ($89 billion) bid for ABN Amro as it attempts to beat a Royal Bank of Scotland-led consortium in the biggest ever bank takeover, Reuters reports.
Barclays confirmed in a statement its offer, which entitles ABN shareholders to receive 13.15 euros in cash and 2.13 new Barclays shares for each ABN share tendered.
The offer period will run from August 7 until October 4, Barclays said in an offer memorandum published in Dutch newspapers on Monday.
At current share prices and foreign exchange rates, the Barclays offer is worth about 34.54 euros per share of ABN.
Barclays’s offer will compete against a planned 71 billion euros offer by a consortium of Royal Bank of Scotland, Belgian-Dutch Fortis and Spain’s Santander, which will be about 93 percent in cash.
Barclays’ formal bid comes a few hours before Fortis shareholders vote on whether Fortis can go forward to buy ABN and issue 13 billion euros in shares to fund its part of the deal.