ABN AMRO has completed the $21 billion sale of U.S. subsidiary LaSalle Bank to Bank of America, which will result in a fourth-quarter book gain of €7.3 billion ($10.4 billion).
The sale of LaSalle to Bank of America was at the centre of a legal dispute this year as ABN faced offers from two rival bidders. In July, the Dutch Supreme Court overturned an order by a lower court freezing the sale of LaSalle to Bank of America after shareholders demanded that they be allowed to vote on the deal.
It was seen as a poison pill against any bid rivalling a takeover offer for ABN by Britain's Barclays. "The sale of LaSalle will result in a book gain of approximately €7.3billion, which will be accounted for in ABN AMRO's fourth quarter results," the lender said in a statement.
Shares in ABN were up 0.6 percent at €37.16, while the DJ Stoxx European banking index was down 0.4 percent. Royal Bank of Scotland, FORTIS and Santander are offering to buy ABN for €71 billion ($101.01 billion), a deal seen as likely to prevail because it currently stands at more than €10 billion above the Barclays' bid.
In a separate statement, Bank of America said customers of LaSalle and Bank of America will be able to make cash withdrawals at more than 18,500 automated teller machines without incurring additional service charges. LaSalle Bank's commercial customers will also have access to services offered by Bank of America's global capital markets and investment banking businesses, Bank of America said.
Norman Bobins, who is currently chairman of La-Salle, will become chairman emeritus of LaSalle, while Robert Moore, chief executive, will serve as the LaSalle transition executive until he leaves the position at the end of 2007.
Source: National Post Date: 03.10.2007 [106]
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