ABN Amro Bank NV – The investment market is often like the relationship market; the ugly, very little duck can turn into an appealing prince(s) after someone possesses given it some attention. And exactly happens next, all of a sudden, the previous duck gets surrounded by a sequence of new admirers. They all need her. Or him.
At present, on the scene is ABN AMRO. Not small, not exactly ugly, but not “performing” according to the stock exchange standards (whatever they might be). Plus, the bank found a consumer (Barclays) to pay around 36 euros for its shares.
ABN Amro Bank NV – Brand-new admirers of the bank will include three European banking companies that are willing to offer 39 euros. “Why 39, very well, you may ask. Perhaps since 40 seems psychologically excessive or simply that 39 broken down by three is exactly tough luck.
ABN Amro Bank NV – The offer of this pool (formed by the Spanish financial institution Santander, the Belgium financial institution Fortis and the Royal Financial institution of Scotland) will bring ABN to a demolition stage; every bank acquires a part of the entire. Santander receives the desired Italian language branch – only lately developed and Brazil, Fortis the Benelux part and RBS the American procedure.
Whether this particular split-up would be worse than the original offer from Barclays remains unanswered. Many believe, therefore, I doubt it from the cultural point of view.
ABN Amro Bank NV – The problem in which ABN is stranded is only one of incomplete acquisition. It is to consume or get eaten within the financial world, and ABN ate only 1 / 2 it is away. It remained the company with a well-established marketplace in Europe but minor in nearly any other region. For Santander, it makes a lot more sense to acquire Brazil and an Italian part (something its rival – BBVA – could manage therefore far).
The acquisition of Fortis will make perfect sense — although a more considerable cultural mismatch. And the overseas (US) actions of RBS seem none illogical.
Cultural speaking, the actual break up would make more feeling, because each three banking institutions would expand with comparable cultures. Santander would provide a much better fit for the Brazilian part, although you could question whether this also fits the Italian case.
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