The global banking scene is being transformed through an unprecedented move by a consortium comprising Belgium’s Fortis, UK bank Royal Bank of Scotland and Spain’s Santander, which looks set to bid for ABN AMRO, the Amsterdam-headquartered bank, already under offer from Barclays Bank.
The bid may fail but is still cutting edge, in that it opens up the mergers and acquisitions (M&A) field to many more bidders and increases the number of targets. It will allow smaller banks to take on bigger institutions with no need to resort to share issues or increased leverage.
