Barclays in 'strong position' on ABN

Barclays bank is in a strong position in its talks on an $80 billion takeover of Dutch rival ABN Amro, head of investment banking…

Barclays bank is in a strong position in its talks on an $80 billion takeover of Dutch rival ABN Amro, head of investment banking Bob Diamond said today.

Mr Diamond said he was pleased with meetings he had had with investors since Barclays confirmed it was in exclusive talks to buy ABN Amro.

Talks between Barclays and ABN last week outlined a framework for a merger for a combined bank that would be listed in London, headquartered in Amsterdam and have its two top jobs split.

Those talks began after British hedge fund TCI urged ABN Amro the bank last month to break up or sell itself.

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Shares in ABN were up 0.6 per cent at €32.92 earlier this morning, near lifetime highs, in Amsterdam. ABN's share have risen more than 20 per cent since it announced it was in merger talks with Barclays.

On the London Stock Exchange, Barclays shares were down 1 per cent at 734 pence but still up nearly 10 per cent from a week earlier.