Santander to hold EGM over funding for ABN Amro bid

25 June 2007

Santander is to hold an extraordinary general meeting (EGM) on July 27th with a view to garnering shareholder support for its bid for ABN Amro.

The Spanish investment bank forms part of a consortium - which also includes Royal Bank of Scotland and Fortis - currently bidding for the Dutch bank.

In order to do so it plans a capital increase of $5.4 billion and the issue of convertible bonds to the value of $6.7 billion, for which it will seek approval at the EGM to be held in its home city of Santander.

Santander chairman Emilio Botin said: "(The purchase of ABN Amro) would meet with the investment criteria I have outlined: positive earnings per share from the first year and a return on investment greater than the cost of capital from the second year.

"For Santander, the advantages (of the acquisition) are clear, which, if it goes ahead, will allow us to acquire some very interesting assets."

News of developments in the wrangle to acquire ABN Amro comes as Santander has announced that it expects 2007 to show a 21 per cent rise in profits, owing in part to growth in its domestic market and in Latin America.

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