Deal Making In Troubled Waters: The Abn Amro Takeover Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

IMD-1-0276 © 2008
Cossin, Didier; Keuleneer, Luc

Eight months later, after a head to head conflict with Barclays, the bank was finally sold to a Royal Bank of Scotland-led consortium, which contained Banco Santander of Spain and Fortis, the Belgo-Dutch group. It was the largest financial services transaction and the first time that bidders had attempted to break up a sizable lender.

This case looks at the events that led up to the takeover and analyzes some of the strategic decisions of the recent past that might have activated the procedure. It discusses time and the financing of the deal in the troubled financial markets of 2007 and raises questions about the future. What were the dangers of dividing the bank? Could this intricate endeavor be achieved successfully? Learning objectives: This integrative case gives participants a summary of the different facets of a takeover: finance and control, integrated risk management, strategy. Problems for discussion include concerns regarding integration planning and execution, tactical lessons for the future of banking in Europe and world-wide; strengths and weaknesses of both bids regarding valuation, synergies, timing and deal structure.

Subjects: Acquisition; Takeover; Synergies; Valuation; Deal structure and timing; Integration and implementation planning; Banking strategy; Finance and control; Integrated risk management; Strategy; Leadership
Settings: The Netherlands; Europe; Global; Financial Services; Banking; 2006 assets of €987 billion; 105,000 employees; 2007