In a letter to ABN AMRO in February 2007, TCI, a British hedge fund with a small stake in ABN AMRO, said: "We believe that it would be in the interests of all shareholders and other stakeholders and ABN AMRO for the Board of ABN AMRO to actively pursue potential break up, spin-off, sale or merger of its various businesses (or at all). " Eight months later, after a head to head battle with Barclays, the bank was finally sold to a consortium of Royal Bank of Scotland, which included Banco Santander in Spain and Fortis, the Belgian-Dutch group. It was the largest financial services deal ever, and the first time that bidders were trying to split a large creditor. This case looks at the events that led to the absorption and considers some of the strategic decisions of the recent past, which may have caused the process. It addresses the funding and timing of the transaction in the turbulent financial markets in 2007, and raises questions about the future. What are the risks of splitting the bank? Maybe it's a challenge to be made well? Learning objectives: an integrative case provides participants with an overview of various aspects of connection: finance and management, integrated risk management strategy. Issues to be discussed include the strategic lessons for the future of banking in Europe and around the world.; Strengths and weaknesses of the two applications for evaluation, the synergies, the terms of the transaction structure, the concern over the planning and implementation of the integration of the "Hide
by Didier Cossin, Luke Keuleneer Source: IMD 30 pages. Publication Date: August 25, 2008. Prod. #: IMD255-PDF-ENG
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