Bank of America suspends ABN Amro lawsuit

15 June 2007

Bank of America (BofA) has postponed its plan to pursue legal action against ABN Amro, a spokesman for the investment bank has announced.

BofA was moved to pursue action after the planned sale of ABN Amro's La Salle unit was suspended by Dutch banking regulatory authorities.

However, in a statement released by the US bank, it announced that it will now wait until the Dutch Supreme Court's ruling as to the legality of the sale.

"Bank of America and ABN asked to delay the lawsuit," a spokesman for Bank of America told Reuters.

The outcome of the court's ruling has implications on the struggle to acquire ABN Amro currently being enacted between Barclays Bank and a consortium led by Royal Bank of Scotland, whose offer is conditional on the inclusion of ABN Amro's La Salle unit.

News of BofA's plans comes after reports surfaced this week that Barclays has drawn up a contingency plan to improve its offer for ABN Amro with the addition of a cash sweetener.

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