Global Capital Markets

ABN Amro, the listed Dutch bank, and Barclays, the UK bank, have closed in on a narrow range for the pricing of their potential merger, it is understood. The two are said to have pretty much agreed on the price within a narrow range. The price is understood to include a cash component and a premium. Meanwhile, it is understood that it may take another two to three weeks before the necessary clearances are obtained to announce the deal. A number of technicalities surrounding tax and regulatory issues need to be resolved before the deal can be finalised, it is understood, while Barclays is still focussed on working out the cost savings it expects to gain from the deal. It was pointed out, however, that it was possible that during its synergy exercise, Barclays could decide a deal was not viable. Meanwhile, sources have indicated that the cash component of the deal will be aimed at making the deal more palatable and to lessen dilution to both sets of shareholders. A spokesperson for Barclays declined to comment. Spokespeople for ABN Amro were unavailable to comment.