ABN AMRO

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Posted by kaori 04/08/2009 @ 20:09

Tags : abn amro, banking, finance

News headlines
Goodbye ABN Amro Craigs, hello Craigs Capital? - National Business Review
Craigs Capital and Craigs Investment are being touted as possible new names for ABN Amro Craigs. Although the firm's staying mum, the Craigs Capital moniker has been reserved at the Companies Office, along with Craigs Investment Group and Craigs...
ABN Amro claims 60 Reijtenbagh works - DutchNews.nl
ABN Amro has made a legal claim for more than 60 items from the art collection of Dutch investor Louis Reijtenbagh, the Volkskrant reports on Friday. The collection, held in a vault in The Hague and Reijtenbagh's house in the Belgian border town of...
Manufacturing sector begins to expand - Livemint
The ABN Amro India Manufacturing Purchasing Managers' Index (PMI) stood at 53.3 in April, the first month of expansion since last October. A reading above 50 signifies expansion. The effect on the stock market was immediate, with the benchmark Sensex...
EFG Private Bank hires private bankers from ABN AMRO, Citi - Wealth Bulletin
Eurobank EFG Private Bank, the Luxembourg-based private bank of EFG Eurobank, has hired six private bankers from ABN AMRO and Citi Private Bank. Robert Berbee was appointed head of international wealth management, while Michel Oosterhaven was appointed...
Indian Output Declines by Most in 16 Years Amid Slump - Bloomberg
Six rate cuts since October and increased government spending worth a combined 7 percent of gross domestic product may already be bearing fruit, with ABN Amro Bank NV's Purchasing Managers' Index showing manufacturing grew in April for the first time...
Barclays' ambitions are hotting up - Telegraph.co.uk
It was barely two years ago that Barclays was in the thick of a $100bn takeover battle for ABN Amro. Walking away from that deal spared the bank the disastrous aftermath that afflicted Royal Bank of Scotland and Fortis. But it hasn't dampened its...
Hedge on These Three Chinese Companies - CNBC
Daphne Roth, Head Equity Research of Asia at ABN AMRO Private Banking, tells CNBC Asia's Protect Your Wealth, that she believes Asian markets have been overbought and a sell-off can be expected soon. "What we advise investors to do is to position...
Hazy finances may derail Subhiksha's revival - Economic Times
The major lenders of Subhiksha include ICICI Bank, HSBC, ABN AMRO, Centurion Bank, Bank of Punjab, Yes Bank, Standard Chartered, HDFC Bank, Development Credit Bank, Federal Bank and Bank of Baroda. “We continue to work with lenders and other...
WSJ: MBIA sued by group of banks on fraudulent restructuring - Update - RTT News
Other banks involved in the lawsuit include Citigroup, Morgan Stanley, ABN Amro Bank NV, Sumitomo Mitsui Financial Group, Inc., Societe Generale, Credit Agricole SA, Wells Fargo & Co., HSBC Holdings Plc, BNP Paribas, Barclays PLC, Royal Bank of...

ABN AMRO

ABN AMRO4.jpg

ABN AMRO is a Dutch bank, currently owned by RFS Holdings B.V., a consortium of Royal Bank of Scotland Group, the Government of the Netherlands, and Banco Santander. The bank was created as the result of the 1990-91 merger between Amsterdam-Rotterdam (AMRO) Bank and ABN, whose history dated back to the founding of the Nederlandsche Handel-Maatschappij in 1824.

Between 1991 and 2007, ABN AMRO was one of the largest banks in Europe and had operations in about 63 countries around the world.

In the biggest banking takeover in history, a consortium comprising RBS, Fortis, and Banco Santander acquired ABN AMRO in 2007.

Due to the 2008 financial crisis, the Dutch government nationalised the divisions owned by Fortis, while the UK government is now in effective control over the divisions allocated to RBS due to its financial bail-out of the Scottish bank. The process of integrating some of ABN AMRO's divisions into the new owners, and divesting others, continues. On April 7, 2009 the UK state-owned RBS unveiled plans to fire upwards of 9000 staff.

ABN AMRO had come to a crossroads in the beginning of 2007. The bank had still not come close to its own target of having an ROE that would put it among the top 5 of its peer group, a target that the CEO, Rijkman Groenink had set upon his appointment in 2000. From 2000 until 2006, ABN AMRO's stock price stagnated.

Financial results in 2006 added to concerns about the bank's future. Operating expenses increased at a greater rate than operating revenue, and the efficiency ratio deteriorated further to 69.9%. Non-performing loans increased considerably year on year by 192%. Net profits were only boosted by sustained asset sales.

There had been some calls, over the prior couple of years, for ABN AMRO to break up, to merge, or to be acquired. On February 21, 2007, the call came from the TCI hedge fund which asked the Chairman of the Supervisory Board to actively investigate a merger, acquisition or breakup of ABN AMRO, stating that the current stock price didn't reflect the true value of the underlying assets. TCI asked the chairman to put their request on the agenda of the annual shareholders' meeting of April 2007.

Events accelerated when on March 20 the British bank Barclays and ABN AMRO both confirmed they were in exclusive talks about a possible merger. On March 28, ABN AMRO published the agenda for the shareholders' meeting of 2007. It included all items requested by TCI, but with the recommendation not to follow the request for a breakup of the company.

However, on April 13, another British bank, the Royal Bank of Scotland (RBS) contacted ABN AMRO to propose a deal in which a consortium of banks, including RBS, Belgium's Fortis, and Spain's Banco Santander Central Hispano (now Banco Santander) would jointly bid for ABN AMRO and thereafter break up the different divisions of the company between them. According to the proposed deal, RBS would take over ABN's Chicago operations, LaSalle, and ABN's wholesale operations; while Banco Santander would take the Brazilian operations and Fortis, the Dutch operations.

On April 23 ABN AMRO and Barclays announced the proposed acquisition of ABN AMRO by Barclays. The deal was valued at €67 billion. Part of the deal was the sale of LaSalle Bank to Bank of America for €21 billion.

Two days later the RBS-led consortium brought out their indicative offer, worth €72 billion, if ABN AMRO would abandon its sale of LaSalle Bank to Bank of America. During the shareholders' meeting the next day, a majority of about 68% of the shareholders voted in favour of the breakup as requested by TCI.

The sale of LaSalle was seen as obstructive by many: as a way of blocking the RBS bid, which hinged on further access to the US markets, in order to expand on the success of the group's existing American brands, Citizens Bank and Charter One. On May 3, 2007, the Dutch Investors' Association (Vereniging van Effectenbezitters), with the support of shareholders representing up to 20 percent of ABN's shares, took its case to the Dutch commercial court in Amsterdam, asking for an injunction against the LaSalle sale. The court ruled that the sale of LaSalle could not be viewed apart from the current merger talks of Barclays with ABN AMRO, and that the ABN AMRO shareholders should be able to approve other possible merger/acquisition candidates in a general shareholder meeting. However in July 2007, the Dutch Supreme Court ruled that Bank of America's acquisition of LaSalle Bank Corporation could proceed. Bank of America absorbed LaSalle effective October 1, 2007.

On July 23 Barclays raised its offer for ABN AMRO to €67.5bn, after securing investments from the governments of China and Singapore, but it was still short of the RBS consortium's offer. Barclay's revised bid was worth €35.73 a share — 4.3% more than its previous offer. The offer, which included 37% cash, remained below the €38.40-a-share offer made the week before by the RFS consortium. Their revised offer didn't include an offer for La Salle bank, since ABN AMRO could proceed with the sale of that subsidiary to Bank of America. RBS would now settle for ABN's investment-banking division and its Asian Network.

On July 30 ABN AMRO withdrew its support for Barclays’ offer which was lower than the offer from the group led by RBS. While the Barclays offer matched ABN AMRO’s “strategic vision,” the board couldn’t recommend it from “a financial point of view.” The US$98.3bn bid from RBS, Fortis and Banco Santander was 9.8% higher than Barclays’ offer.

Barclays Bank withdrew its bid for ABN AMRO on 5 October, clearing the way for the RBS-led consortium's bid to go through, along with its planned dismemberment of ABN AMRO. Fortis would get ABN AMRO's Dutch and Belgian operations, Banco Santander would get Banco Real in Brazil, and Banca Antonveneta in Italy and RBS would get ABN AMRO's wholesale division and all other operations, including those in Asia.

On October 9, the RFS consortium led by Royal Bank of Scotland, bidding for control of ABN AMRO, formally declared victory after shareholders, representing 86 percent of the Dutch bank’s shares, accepted the RFS group’s €70bn offer. This level of acceptance cleared the way for the consortium to take formal control. The group declared its offer unconditional on October 10, when Fortis completed its €13bn rights issue. Thus the financing required for the group’s €38-a-share offer, which included €35.60 in cash, was realised. Rijkman Groenink, Chairman of the Managing Board of ABN AMRO, who heavily backed the Barclays offer, decided that he would step down.

On 22 April 2008 RBS announced the largest rights issue in British corporate history, which aimed to raise £12billion in new capital to offset a writedown of £5.9billion resulting from the bad investments and to shore up its reserves following the purchase of ABN AMRO.

On 13 October 2008, British Prime Minister Gordon Brown announced a UK Government bailout of the financial system. The Treasury would infuse £37 billion ($64 billion, €47 billion) of new capital into Royal Bank of Scotland Group Plc, Lloyds TSB and HBOS Plc, to avert financial sector collapse. This resulted in a total government ownership in RBS of 58%.

As a consequence of this rescue the chief executive of the group Sir Fred Goodwin offered his resignation, which was duly accepted.

In January 2009 it was announced that RBS had made a loss of £28bn of which £20bn was due to ABN AMRO. At the same time the government converted their preference shares to ordinary shares resulting in a 70% ownership of RBS.

On July 11, 2008, the CEO of Fortis, Jean Votron, stepped down after the ABN AMRO deal had depleted Fortis' capital. The total worth of Fortis, as reflected by its stock value, was at that time a third of what it had been before the acquisition, and just under the value it had paid merely for the Benelux activities of ABN AMRO.

Fortis announced in September 2008 that it intended to sell its stake in RFS Holdings, which includes all activities that have not been transferred yet to Fortis (i.e. everything except Asset Management).

In 2008, ABN AMRO completed the sale of a portfolio of private equity interests in 32 European companies managed by AAC Capital Partners to a consortium comprising Goldman Sachs, AlpInvest Partners and CPP for $1.5 billion through a private equity secondary market transaction.

Continuing problems in the Fortis operations in the 2008 financial crisis led to the Dutch state obtaining full control (for €16.8bn) of all Fortis operations in the Netherlands, including those parts of ABN-AMRO then belonging to Fortis. The Dutch government and the De Nederlandsche Bank president have announced the merger of Dutch Fortis and ABN AMRO parts will proceed while the bank is in state ownership.

In January 2009, it was reported that shareholders in Belgian-based Fortis plan to file a lawsuit against the Belgian government over its handling of the carve-up of the troubled financial services group and are also considering a case against the Dutch government.

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2003 ABN AMRO World Tennis Tournament

The 2003 ABN AMRO World Tennis Tournament was a tennis tournament played on indoor hard courts. It was the 31st edition of the event known that year as the ABN AMRO World Tennis Tournament, and was part of the ATP International Series Gold of the 2003 ATP Tour. It took place at the Ahoy Rotterdam indoor sporting arena in Rotterdam, Netherlands, from February 17 through February 23, 2003.

The singles draw featured Association of Tennis Professionals (ATP) No. 3, Australian Open quarterfinalist, Tennis Masters Cup and Sydney runner-up Juan Carlos Ferrero, Doha quarterfinalist and Marseille winner Roger Federer, and Sydney quarterfinalist, Paris Masters titlist Marat Safin. Other seeded players were French Open champion Albert Costa, Wimbledon semifinalist Tim Henman, Sebastien Grosjean, Alex Corretja and Sjeng Schalken.

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2001 ABN AMRO World Tennis Tournament

The 2001 ABN AMRO World Tennis Tournament was a tennis tournament played on indoor hard courts. It was the 29th edition of the event known that year as the ABN AMRO World Tennis Tournament, and was part of the ATP International Series Gold of the 2001 ATP Tour. It took place at the Ahoy Rotterdam indoor sporting arena in Rotterdam, Netherlands, from February 19 through February 25, 2001.

The singles line up featured World No. 1, US Open champion, Canada and Paris Masters titlist Marat Safin, Sydney Olympics gold medalist, Moscow winner Yevgeny Kafelnikov, and Washington, Toulouse champion Alex Corretja. Also competing were Vienna and Brighton winner Tim Henman, Australian Open runner-up, Lyon titlist Arnaud Clement, Dominik Hrbaty, Sebastien Grosjean and Juan Carlos Ferrero.

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2000 ABN AMRO World Tennis Tournament

The 2000 ABN AMRO World Tennis Tournament was a tennis tournament played on indoor hard courts. It was the 28th edition of the event known that year as the ABN AMRO World Tennis Tournament, and was part of the ATP International Series Gold of the 2000 ATP Tour. It took place at the Ahoy Rotterdam indoor sporting arena in Rotterdam, Netherlands, from March 14 through March 20, 2000.

The singles draw was led by ATP No. 2, Australian Open runner-up, Moscow titlist and Rotterdam defending champion Yevgeny Kafelnikov, Australian Open quarterfinalist, and recent Dubai winner Nicolas Kiefer, and Australian Open semifinalist, Auckland titlist Magnus Norman. Also present were Lyon and Indianapolis champion Nicolas Lapentti, Rotterdam defending finalist Tim Henman, Thomas Enqvist, Greg Rusedski and Cedric Pioline.

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Source : Wikipedia