The Managing and Supervisory Boards of ABN AMRO, in their respective meetings on 26 and 27 July 2007, discussed the Consortium offer and the proposed Barclays offer with a view to coming to a reasoned position on both Offers taking into account the best interest of the Company’s shareholders and other stakeholders.
Barclays announced on 23 July the proposed terms of its revised Offer. As at the market close on 27 July 2007, the Barclays offer was at a 1.0 percent discount to the ABN AMRO market price and at an 8.8 percent discount to the see-through value of the Consortium offer.
The Consortium formally launched its Offer on 21 July 2007. The current value of the Offer, with its high cash component, is attractive to the ABN AMRO shareholders. As at the market close on 27 July 2007, the Consortium offer was at a premium of 8.5 percent to the ABN AMRO market price and of 9.6 percent to the Barclays Offer’s implied value.
However, the Boards have identified a number of significant risks to the Consortium offer. For example, the ABN AMRO Boards have significant unresolved questions about the proposed break-up of ABN AMRO and the proposed methodology of the Consortium to implement such a break-up. The approval of the proposed transaction by the Ministry of Finance and the views of the Dutch Central Bank also remain uncertain, including as to timing and associated conditions of any such approval, particularly in view of the proposed break-up.
In light of the above, the Boards say they are not currently in a position to recommend either Offer for acceptance to ABN AMRO shareholders.
ABN Amro has reported first half 2007 results with strong operating performance in conditions of corporate uncertainty. They have reported revenue growth of 12.6 percent and adjusted operating revenue growth of 14.3 percent driven by increases in all Business Units.