Barclays withdrew an offer for ABN Amro today, claiming not enough shareholders accepted the offer, which expired yesterday. The withdrawal has been expected for the past few weeks, as BCS shares dropped following the credit crunch.
Throwing in the towel, Barclays now must sulk to the sidelines and watch the Royal Bank of Scotland do an end-zone dance, as the company and its partners will purchase ABN Amro for $101 billion. ABN arenas will be divvied 3 ways: RBS will take over ABN's investment banking business and operations in Asia; Fortis will run the Dutch division; and Spain's Banco Santander (STD) will take control of the Brazilian unit.
Following the closing of the RBS offer, shares in ABN were suspended. The stock closed at 37.32 euros, unwavering from the previous close. The company doesn't go unpunished, though, as it will pay Barclays a 200-million euro break fee previously agreed to at the start of negotiations.
Barclays shares are currently up 1.05% at $53.89. The stock has been on a steady decline since it hit the 62 level in February. Though it cascaded under its 10-day and 20-day moving averages late last week, shares are on the rise and currently near 4 points above both averages.