MLex: SEC inquiry into ABN share trades during Barclays bid

24 January 2008

US regulators are looking into share trades at Dutch bank ABN Amro in the weeks before Barclays launched its bid in March last year.

 

The US Securities & Exchange Commission has requested lists naming those with insider knowledge from all the banks involved - ABN and Barclays as well as the rival consortium of Royal Bank of Scotland, Santander and Fortis that ultimately won the battle with a £49bn bid.

 

Although sources said such a request would be routine for what was the largest ever takeover in the financial services industry, the SEC is likely to focus its investigation on the high volume of share trades in the build-up to the bid.

 

Hedge funds played a key role in the takeover, which was kick-started by one of the world's most active investors - TCI - in February.

 

Volumes of share trades shot up in December 2006 and before official news of Barclays' interest in March.

 

The SEC's request for co-operation came recently, insiders said, and follows separate inquiries last summer by both the Dutch regulator AFN and the UK's Financial Services Authority.

 

ABN, Fortis and Santander confirmed they had received a "routine request" from the SEC, and all five banks are believed to be co-operating.

 

By Philip Aldrick

© Graham Bishop