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Last Updated: Wednesday, 18 April 2007, 13:55 GMT 14:55 UK
Dutch bank cautions on ABN bid
ABN Amro bank
Several suitors have ABN Amro in their sights
The Dutch central bank has warned that a bid from Royal Bank of Scotland for ABN Amro could have "strong risks".

The central bank has to approve any takeover deal, and its view is seen as a fillip for the UK's Barclays bank which is in exclusive talks with ABN.

Talks between the two were recently extended until Friday, if no deal is agreed ABN will meet other suitors.

While Barclays wants to merge with ABN, a rival consortium led by RBS hopes to split the Dutch bank up.

Report suggest the consortium - which includes Fortis and Spain's Santander bank - could pay as much as 40 euros a share ($54.34; �27) for the Dutch firm.

Such an offer is believed to be significantly higher than the offer on the table from Barclays.

While no details have been revealed, it is thought that Barclays is only willing to go as high as 35 euros ($47; �24) a share.

The Dutch central bank said: "From a prudential point of view, a bid by the consortium would be very risky and complicated, in the execution and implementation of a transaction."

To date the only offer that has the acceptance of ABN's board is Barclays'.


SEE ALSO
Profits rise at merger target ABN
16 Apr 07 |  Business
ABN bid battle 'could go hostile'
15 Apr 07 |  Business
ABN Amro break-up 'not a problem'
09 Apr 07 |  Business
ABN Amro questions break-up plan
28 Mar 07 |  Business
Barclays man earns a record �22m
26 Mar 07 |  Business
Barclays in exclusive ABN talks
20 Mar 07 |  Business

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