RBS Group Sweetens ABN Bid - TheStreet

RBS Group Sweetens ABN Bid

The would-be buyers would use cash gathered in the LaSalle sale.
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Royal Bank of Scotland, Fortis and

Banco Santander


still want

ABN Amro



On Monday, the consortium sweetened its $98 billion proposed offer for the Dutch bank, saying ABN shareholders can get 93% of the deal's value in cash -- up from 70% before.

ABN Amro agreed in April to a $91 billion merger with U.K. bank


(BCS) - Get Report

. As part of that agreement, ABN agreed to sell LaSalle to Bank of America for $21 billion.

RBS said on Monday that instead of acquiring LaSalle, it will acquire the cash from the sale of the bank to BofA. The consortium plans to break up ABN Amro.

The group said it intends to continue with its offer to acquire the Dutch bank's global wholesale businesses and international retail businesses. The move comes just days after the Dutch supreme court ruled ABN Amro was free to sell its Chicago-based retail bank LaSalle to

Bank of America

(BAC) - Get Report

without first getting shareholder approval.

"From a strategic perspective, whilst we would have preferred to acquire LaSalle as well, the businesses we are acquiring open up many new markets and growth opportunities, enabling us to significantly accelerate our strategic development," said Sir Fred Goodwin, RBS' group chief executive, in a statement.

The consortium said it "received assurances from ABN Amro that their proposed offer will be dealt with on a level playing field."

An ABN Amro spokesman was not immediately available.

Shares of ABN Amro rose 68 cents to $51.18.