Speculation over Royal Bank of Scotland's interest in the fate of Dutch banking group ABN Amro intensi- fied over the weekend, with reports that Spanish bank Banco Santander and Royal Bank were actively working to table a counterbid.
There were also reports that ABN and its current suitor, Barclays Bank, might seek to head off Royal Bank by offering to sell it La Salle Bank, ABN's Chicago-based subsidiary.
A Reuters report yesterday quoted a source close to the deal saying: "That is the thing (Royal Bank chief executive) Sir Fred Goodwin wants. If he can get that anyway, why should he bother getting involved in a fully-blown bid?"
ABN and Barclays entered talks last month over a potential £90.05bn merger, with an exclusivity deadline of April 18. The talks were triggered after the Dutch bank came under pressure from investors, including British hedge fund TCI, to consider a sale or break-up to boost shareholder returns.
ABN and Barclays are expected to unveil a deal within the 10-day timescale.
Analysts have said Royal Bank is one of the most likely banks to launch a rival bid, but Europe's second-biggest bank has declined to comment on its intention and is not expected to move until Barclays shows its hand.
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