ABN Amro abandons bank takeover battle

Dutch bank ABN Amro has conceded its public offer for shares in Italian Banca Antonveneta was doomed after it failed to attract…

Dutch bank ABN Amro has conceded its public offer for shares in Italian Banca Antonveneta was doomed after it failed to attract a majority of the shares.

ABN Amro confirmed in a statement today what Italian stock market authorities had already announced on Friday:

the Dutch group - which held almost 30 per cent of Antonveneta - obtained only 2.88 per cent more though its public offer of €26.50 per share in cash.

The bid was countered by Banca Popolare Italiana, which holds 30 per cent of Antonveneta, Italy's ninth largest banking group, directly and 40 per cent along with Italian allies.

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Foreign interests face virtually insurmountable obstacles to buying Italian banks, as Bank of Italy governor Antonio Fazio is a strong advocate of maintaining domestic control over the country's financial institutions.

Two attempts by foreign investors to break into the Italian financial market have now failed since Spanish banking group BBVA said on Friday it was dropping a separate bid to acquire Banca Nazionale del Lavoro.