ABN Amro

European banks bent on more capital

Wed, 23 Apr 2008 06:59:54 -0400

Now this is eye popping: Royal Bank of Scotland has announced a $24 billion sale of stock, the biggest offering in British corporate history, according to the AP. The new capital is sorely needed to provide a cushion in the wake of extensive mortgage-related losses. The bank has said it will write down close to $12 billion. Ouch! Other British banks will do the same, joining their American brethren, notably Citigroup, Merrill Lynch and JP Morgan Chase. But $24 billion? This will be seen a humiliation by many, especially after its historic purchase of ABN last year. The terms on the RBS deal will be interesting. Lots of preferred shares issuers have been offering souped-up yields, ensuring not shortage of buyers.

For more:
- here's the AP article

China a new player in world financial services?

Mon, 23 Jul 2007 20:01:37 -0400

Perhaps it was inevitable that China would enter the financial services arena. Perhaps we'll look back some day and say the country's $3 billion investment in the Blackstone Group was the first step. Another step, the China Development Bank has pledged roughly $3 billion to invest in ABN Amro via Barclays, which was able to boost its bid and add a cash component. It's unclear whether this will be enough to win against the Royal Bank of Scotland's group, but it is a more competitive fight. The other new partner that Barclays has lined up is Temasek, Singapore's national investment company. We're seeing some interesting forays into financial services by Asian banks. So financial services investment is a two-way street.

For more:
- here's a New York Times article

ALSO NOTED: Apollo to list shares on Goldman Sachs system; ABN Amro studying both bids; and much more...

Wed, 18 Jul 2007 20:01:30 -0400

Company News:
> Knight Capital earnings drop 20 percent. Article
> KKR mulling bid for Macy's? Article
> ABN Amro studying both bids. Article
> Apollo to list shares on Goldman Sachs system. Article
> Fifth Third earnings decline. Article

Industry News:
> Subprime woes weigh on financial stocks. Article
> The fourth annual Hedge Fund Regatta. Article

Regulatory News:
> Prosecutors want $52 million from Nacchio. Article

And Finally... Here's a job interview survival kit.

RBS sweetens bid for ABN Amro

Sun, 15 Jul 2007 20:01:36 -0400

You've got to wonder about the new bid by the Royal Bank of Scotland-led consortium for ABN Amro. It said all along that LaSalle was the main prize in its efforts to buy the Dutch giant; it intended to use the purchase to grow in the United States. But then the courts ruled that ABN could go ahead with its plans to sell LaSalle to Bank of America. But the RBS Group has decided to sweeten its bid for the bank by boosting significantly the cash portion (to more than 90 percent from around 80 percent before) of its near $100 billion bid. RBS execs said the bank never considered giving up. So the court decision effectively boosted the value of all non-LaSalle assets it seems. You have to think that the assets are favorably valued right now. Barclays may have to go higher itself or give up the game.

For more:
- here's an article from The Times

SPOTLIGHT: Bank of America Victory?

Sun, 15 Jul 2007 20:01:32 -0400

A Dutch court has ruled that ABN Amro can sell its LaSalle unit to Bank of America, which is surely applauding. What happens to ABN Amro is still up in the air. All eyes are on RBS. Article

ALSO NOTED: Apollo Management hires lobbyist; Citigroup to buy trading platform; and much more...

Mon, 02 Jul 2007 20:01:30 -0400

Company News:
> Citigroup to buy trading platform. Article
> Citigroup completes U.S. Trust deal. Article
> Citigroup's London HQ sold. Article
> Barclays gets okay to delay offer for ABN AMRO. Article
> State Street completes acquisition. Article
> More on the long wait for exact losses on Bear Stearns funds. Article
> BONY, Mellon complete deal. Article

Private Equity News:
> Another buyout for Carlyle Group. Article
> Apollo Management hires lobbyist. Article

Industry News:
> ICE lobbies CBOT shareholders with letter. Article

And Finally... How to best a backstabber in the office. Article

Bank of America, RBS no longer talking

Tue, 05 Jun 2007 20:01:36 -0400

An ABN Amro update: It's still unclear who will emerge the victor in what would be the largest deal in history, close to $100 million. But Sir Fred Goodwin, CEO of Royal Bank of Scotland, did say that talks between Bank of America and RBS over LaSalle, the Chicago-based unit of ABN Amro, were no longer going on. Apparently, the two sides did not agree on a price, which is not surprising. One could argue that the whole point of RBS's gambit is to establish a larger beachhead in the lucrative U.S. retail market. LaSalle would fit nicely with those plans. Of course, they would fit nicely with Bank of America's as well. So the fate of LaSalle is also unclear. A key court decision is coming in July. This is really dragging on.

For more:
- here's the Financial Times article

RBS ups the stakes in ABN Amro battle

Tue, 29 May 2007 20:01:35 -0400

The battle for Dutch financial giant ABN Amro got a bit more interesting when Royal Bank of Scotland announced it was going hostile with its offer, which seems to top a friendly offer from Barclays. Either way, the deal will be valued at nearly $100 billion. Astounding. Bank of America, of course, has a lot at stake. It had, or at least thought it had, a deal with ABN to buy LaSalle, the Chicago powerhouse, but a Dutch court has frozen that deal and Bank of America is in litigation to force the deal through. The problem is that RBS's main interest is also in LaSalle, and the Bank of America deal was seen a poison pill of sorts. RBS's hostile deal is contingent on the ABN-Bank of America deal for LaSalle not going through. Ultimately, it looks like ABN shareholders will have the final say.

For more:
- here's a Business Week Online article

Bank of America grows its investment banking

Wed, 16 May 2007 20:01:34 -0400

No one sees Bank of America as an investment banking power. The Rorschach quick association is with retail banker, and we've been following its so-far thwarted attempts to buy LaSalle from ABN Amro. But Financial News Online notes that the big North Carolina bank has designs on investment banking. In fact, the bank has set an audacious goal: It wants a top-three ranking in the U.S. That will be exceedingly hard to achieve. But there has been progress. Gene Taylor, in Charlotte, tapped ex-Morgan Stanley exec Brian Brille to run investment banking slowly--the two ended the investment vs. commercial bankers rift and lifted ambitions. As of now, it is No. 10 in the investment banking league tables, by one measure. So it has a ways to go, but it is a presence.

For more:
- here's the article Financial News Online

ALSO NOTED: HSBC hit by mounting credit losses; More on Barclays/RBS tactics for ABN Amro; and much more...

Tue, 15 May 2007 20:01:30 -0400

Company News:
> More on Barclays/RBS tactics for ABN Amro. Article
> SunTrust to buy back shares. Article
> Evercore earnings strong. Article
> Morningstar director sells shares. Article
> Claymore licenses Morningstar indexes for ETFs. Article
> Fortress earnings fall, costs climb. Article

Industry News:
> Currency trading volumes surge 16 percent in 2006. Article

Regulatory News:
> Ex-Fed chairman hired by Pimco. Article

And Finally... Gas prices soaring even higher? Article