ABN asks RBS for more details

Dutch bank ABN AMRO has asked suitors led by Royal Bank of Scotland to provide more details of the financing and structure of…

Dutch bank ABN AMRO has asked suitors led by Royal Bank of Scotland to provide more details of the financing and structure of a planned $98 billion offer that could scupper its agreed deal with Barclays.

In a letter sent to the consortium of banks today and obtained by Reuters newsagency, ABN said it needed more elements to assess the cash-and-shares proposal that seeks to trump an $88 billion takeover by Barclays and said it also wanted more certainty on the consortium's funding.

The RBS-led trio, which also includes Spain's Santander and Dutch-Belgian group Fortis, said last week it was considering an offer for ABN AMRO and on Friday notified ABN's board that it intended to go ahead, preparing the way for an unsolicited bid as early as this week.

ABN's board favours a deal with Barclays, and its executives have said they want to build up, not break up the bank.

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But the bank is under growing pressure from shareholders to consider alternative suitors and faces an increasingly acrimonious fight with investors who last week backed a motion to sell or break up the group to maximise value, as well as an international legal battle.

At least two shareholders have filed lawsuits in an effort to stop the Barclays deal and the sale of ABN's US unit LaSalle, a key asset for suitor RBS, to Bank of America.

A Dutch court is due to decide on Thursday whether to uphold the planned sale of LaSalle, after shareholder group VEB said it was unlawful and hindered a takeover by RBS.

If the judge upholds the deal, the consortium would need to bid for LaSalle by midnight on May 6th. If not, it could trigger a lengthy battle over the US unit alone, with Bank of America already signalling it would take legal action if the deal fails.