Global banking the acquisition of ABN amro / and the role of fortis - Assignment Example

Only on StudentShare

Extract of sample
Global banking the acquisition of ABN amro / and the role of fortis

Barclays were already negotiating with them for a friendly takeover; however, the RBS led consortium approached with a proposal that aimed at acquiring AMRO's prized asset, LaSalle Bank, based at Chicago in the US. The offer was turned down because that necessitated a split up in ABN AMRO’s assets. Barclays’ offer was initially superior in the sense that they did not insist for any split in ABN AMRO's assets and offered a sum of USD 91.2 billion for entire takeover. Countering Barclays offer, RBS consortium offered much higher price to the tune of USD 99 billion. Further negotiations continued between the concerned parties and a deal was struck at $100 billion between ABN AMRO and RBS consortium; however, the acquisition deal soon brought an unparalleled disaster for the consortium members (Kennedy, 2008). The fallouts of this buyout were catastrophic to the consortium members. Firstly, the consortium paid very high price – most of them in cash for this acquisition causing a distress to their own financial conditions. Unfortunately, the timing of this deal coincided with the famous subprime crisis that emerged across the US leading to financial upheavals across most parts of the world. Valuation of the assets in the portfolio of banks came down crashing across all developed nations. ...Show more


The acquisition of ABN AMRO and the Role of Fortis Part A) The ABN AMRO acquisition is known as the biggest banking takeover in the history and one of the failed mergers for several reasons. Royal Bank of Scotland's (RBS), Fortis and Banco Santander formed a consortium and made a joint bid for taking over ABN AMRO bank during 2007…
Author : medhurstalan
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Global banking the acquisition of ABN amro / and the role of fortis"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Markets: Distinguishing between international banking and global banking
Either banking system deals with assets and borrowers from a location other than the institutional head quarter of the bank. More phenomenally, the difference is identified between the fund raising and distribution stream of both of them while they deal with foreign deposits and borrowings.
12 pages (3000 words) Assignment
The determination of the suitable credit product to be offered to Mr. Mark Angelo and his company Mark Equipment Pty Ltd. necessitates the credit assessment of Mr. Mark Angelo and his company. The collected financial information have to be analyzed in order to examine the ability of the client, Mr.
6 pages (1500 words) Essay
Multinational Acquisition
In this way, Multinational Acquisitions can be seen as a way that firms seek to reduce risk. Yet, various complications arise when a multinational company acquires another multinational company (Ernst & Young, 1994, p. 212). Similarly, due to difference in culture, regulations, tax laws and policies complications arise.
7 pages (1750 words) Research Paper
IT Evolution in Global Banking
With technology, most of the banking operations are now going towards electronic service and there is a substantial reduction in the number of customers that require physical banking services (Kamel 2005). Technology in the recent past has allowed customers to open accounts even when they do not have banks within the adjacent vicinity.
5 pages (1250 words) Essay
As a result of this research is regarded as “an art of scientific investigation”. Eminent scholars such as Wetter (2010) defined research as a process of expanding the knowledge without having any targeted application. The author also mentioned that an applied research o the other hand acts as a linkage between business and science.
6 pages (1500 words) Dissertation
Changes in Gulf banking industry after global financial crisis
Changes in corporate governance Besides corporate governance, management of the culture and language used for communication within the organization plays a very important role in the success of the institutions in the long run (Solomon, 2007). After the banking industry faced the effects of financial crisis, several research works were made on the influence of language and culture of the organizations.
4 pages (1000 words) Research Paper
With the dynamism in the current business environment such as increased costs of doing business and competition, business organizations and financial institutions seek for ways of reducing costs and increasing their productivity levels. Through consolidating by mergers and acquisitions, banks hope to curb these challenges.
5 pages (1250 words) Essay
Competitive Strategy
Usually, this is done by a sophisticated database management system that accomplishes the task of data mining at a blink of an eye. The offshoot is that film companies or online
1 pages (250 words) Essay
Critical Review
case, the web is hub of many articles, ranging from Wall Street Journal, Barons, New York Times and The Economist, with the writer presenting insight on the same. Intuitively, the following is critical reviews of three articles focusing on factors that may affect business
3 pages (750 words) Book Report/Review
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email