The value of embattled Dutch bank ABN AMRO 's shares jumped as much as 5.8 per cent to a record €35.6 in early trade after Royal Bank of Scotland, Dutch-Belgian group Fortis and Spain's Santander confirmed an interest.
"The probability of Barclays acquiring ABN is lower with the emergence of a consortium that has greater synergies," said one analyst. The DJ Stoxx banking sector index topped European gainers with a 0.9 percent rise.
Santander's shares were flat after an initial dip, while RBS rose 1.6 percent bucking expectations of a weaker open. Fortis fell 1.2 percent in Amsterdam.
ABN AMRO has been in exclusive merger talks with Barclays for nearly a month. Shares in Barclays jumped 2.3 percent this morning.