Watch for Ruling on BofA’s LaSalle Buyout

By Rick Rothacker, The Charlotte Observer, N.C.

Jul. 13–The Dutch Supreme Court is set to issue a ruling today that could clear up Bank of America Corp.’s stymied acquisition of LaSalle Bank from ABN Amro Holding NV.

–The background: In April, Bank of America said it was buying Chicago-based LaSalle from Amsterdam-based ABN Amro for $21 billion. The sale was a side deal to Barclays PLC’s agreement to buy the rest of ABN and was widely seen as a poison pill to thwart rival offers for the Dutch bank.

–The competition: A consortium led by Royal Bank of Scotland, however, emerged with a competing offer for all of ABN Amro, including LaSalle. In May, at the behest of upset ABN investors, a lower Dutch court blocked the sale to Bank of America, saying shareholders had to vote to approve the deal.

–The ruling: The Dutch court could side with the position of the country’s advocate general and overturn the lower court ruling, likely clearing the way for Bank of America and Barclays to complete their deals. Or the court could uphold the ruling, aiding RBS’s bid. The case also could be sent back to the lower court for more work, further delaying the bidding war.

–The outcome: Bank of America and RBS could still reach an agreement to divvy up LaSalle assets, with the Charlotte bank keeping prized Chicago operations. In one form or another, the $97 billion takeover battle is likely to result in the largest deal in financial services history.

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