NatWest Shareholders Back Royal Bank of Scotland's Pounds 21 Billion Bid

Strategic Insights -

NatWest shareholders continued to line up behind Royal Bank of Scotland's Pounds 21 billion hostile bid, despite concerns over the financial consequences of the deal. The move has left Bank of Scotland's bid stranded, with its chief executive, Peter Burt, admitting that his bank's offer had failed to gain sufficient support. Sir David Rowland, chairman of NatWest, remains silent on the issue, waiting until February 14 to make a statement.

Key Takeaways:

  • NatWest shareholders have overwhelmingly backed Royal Bank of Scotland's Pounds 21 billion hostile bid, with many supporting the offer over Bank of Scotland's competing bid.
  • Bank of Scotland's bid, valued at Pounds 18.9 billion, has failed to gain sufficient support from NatWest shareholders.
  • The RBS offer, valued at Pounds 20 billion, is expected to cost Royal Bank around Pounds 50 million.
  • Scottish Widows, a major shareholder, threw its weight behind the RBS bid, citing its preference for the bank's broader financial services strategy.
  • Orie Dudley, chief executive of Scottish Widows Investment Management, expressed confidence in RBS's potential for cost savings in its shared branch network.
  • Shares in RBS continued to fall, losing 29p to 875p, while NatWest shares fell 3p to Pounds 11.37. Shares in Bank of Scotland rose 6 1/2p to 677p.

Statistics:

  • NatWest shares fell 3p to Pounds 11.37.
  • RBS shares fell 29p to 875p.
  • Bank of Scotland shares rose 6 1/2p to 677p.
  • Royal Bank of Scotland's offer is valued at Pounds 20 billion.
  • NatWest's offer is valued at Pounds 18.9 billion.
  • The RBS bid is expected to cost Royal Bank around Pounds 50 million.

Sources:

  • The Times, 2000.