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Last Updated: Friday, 14 September 2007, 14:13 GMT 15:13 UK
Barclays investors back ABN bid
Barclays Bank branch
Barclays shares have suffered amid recent credit market woes
Barclays Bank has won the backing of most of its investors to go ahead with its takeover of Dutch bank ABN Amro.

The UK bank said 90% of shareholders had voted in favour of the deal - well above the required 50%.

But Barclays could still lose out in the takeover battle to a consortium led by rival Royal Bank of Scotland (RBS).

RBS has tabled a mostly-cash bid worth 71bn euros ($98.5bn; 49bn). But a mainly-shares offer from Barclays has dipped recently, along with its stocks.

The drop in Barclays' share price means its offer is now worth around 58bn euros ($80.5bn; 40bn) - significantly less that the RBS bid.

US woes

Barclays shares have suffered in recent weeks after it emerged it may be sitting on hefty losses through its role in complicated investments, backed by once-lucrative US home loans which are now largely worthless.

Meanwhile, fallout from US sub-prime mortgage problems has also weighed on the financial sector, adding to the pressure on Barclays.

The bank's offer was initially accepted by the ABN Amro board, but it withdrew its backing in July to "ensure a level playing field" after RBS entered the fray.

Barclays has been bitterly trying to fend off a rival bid to control ABN from a consortium led by Royal Bank of Scotland, which sweetened its offer last month, upping its cash element from 71% to 93% in an effort to win over shareholders.




SEE ALSO
Share falls weaken Barclays' bid
29 Aug 07 |  Business
Europe backs Barclays bid for ABN
06 Aug 07 |  Business
Barclays profits increase sharply
02 Aug 07 |  Business
ABN ends backing for Barclays bid
30 Jul 07 |  Business
Court approves ABN's LaSalle sale
13 Jul 07 |  Business
New twist in ABN Amro bid battle
26 Jun 07 |  Business

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