IMD-1-0276 © 2008
Keuleneer, Luc; Cossin, Didier
Eight months afterward, after a head to head conflict with Barclays, the bank was eventually sold to a Royal Bank of Scotland-led consortium, which contained Banco Santander of Fortis and Spain, the Belgo-Dutch group. It was the very first time that bidders had tried to break up a big lender and the biggest financial services trade.
This case looks at the events that led up to the takeover and analyzes a number of the tactical conclusions of the recent past that might have activated the procedure. It raises questions about the future and discusses the funding and time of the deal in the troubled financial markets of 2007. What were the dangers of dividing the bank? Could this complicated undertaking be realized successfully?
Summary of the various facets of a takeover: strategy, finance and control, integrated risk management. Problems for discussion include concerns regarding integration preparation and execution, tactical lessons for the future of banking in Europe and world-wide; strengths and weaknesses of both bids regarding valuation, synergies, time, deal structure.
Subjects: Takeover; Acquisition; Valuation; Synergies; Integration and implementation planning; Deal structure and timing; Finance and control; Banking strategy; Strategy; Integrated risk management; Leadership
Settings: Europe; The Netherlands; Global; Financial Services; Banking; 2006 assets of €987 billion; 105,000 employees; 2007
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