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Alternative Market Briefing

TCI/ABN feud couldn`t have come at a worse moment, Barclays may be `stretched` to bid for ABN, Bear says, Rivals are watching from the wings, several other banks could afford to pay more for ABN, Key issues hold up Barclays bid for ABN Amro

Friday, April 13, 2007

Opalesque Exclusive: TCI/ABN feud couldn`t have come at a worse moment A Dutch industry specialist shares his macro and local insights on the Dutch events with Opalesque:

  • The hearing was requested by the left wing Socialist Party (much more left than the Dutch Labour Party). The Socialist Party gained a lot of seats in the new parliament following the recent elections. They declined to take part in the new government under a strategy whereby it is better to criticise other people's ideas rather than think own mediocre ones yourself. In particular with the economic climate changing this is perhaps a better electoral strategy.

  • The Dutch Labour Party is under a lot of pressure to show true colours. After being out of governmental power for about 9 years they thought they would win the majority in the elections. When they didn't it was a big blow to their self-esteem and an embarrassment vis-a-vis their voters. In the subsequent government formations they were -too- eager to take part in the government and got a few ministerial portfolios, amongst them Finance.
  • The TCI/ABN feud couldn't have come at a worse moment. The new Labour party Finance minister has to show his colours and been showing to do something. Barclays/ABN will be an option since there will be minimal lay-offs and head-office will be Amsterdam. The TCI attitude is rubbing up various 'stakeholders' the wrong way: Unions (gaining power), Labour, Socialist Party.........................

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