RBS lays conditional €72bn bid for ABN - Independent Online Edition > Business News

RBS lays conditional €72bn bid for ABN - Independent Online Edition > Business News: "RBS lays conditional €72bn bid for ABN "



Royal Bank of Scotland, Fortis and Santander laid down unofficial conditional offers yesterday for both LaSalle bank and the whole ABN Amro group, in an attempt to derail the agreed bids by Bank of America and Barclays.
The RBS consortium is offering $24.5bn (£12.3bn) in cash for LaSalle, conditional on ABN also accepting a €39.40 (£26.89) a share cash and equity offer for the whole ABN Amro group, which would value the company at more than €72bn.
Bank of America and Barclays now have five days to match the consortium's bids. However, it is by no means certain that ABN will accept the RBS group's bid, even though they are higher than the initial Barclays and Bank of America bids.
Although RBS is believed to have its financing for the bid fully underwritten, it is believed that Fortis and Santander do not yet have such certainty over their financial arrangements. Both would have to carry out rights issues to fund their part of the bid, and these may not be complete before the end of the year.
Bank of America's multibillion-dollar lawsuit against ABN Amro, which it launched on Friday, also threatens to prevent the RBS consortium successfully buying LaSalle. The US bank has asked a US court to block the sale of LaSalle to anyone but itself, and is suing ABN for halting the sale of its US subsidiary.
ABN Amro froze the sale of LaSalle last Thursday on the orders of a Dutch court, which upheld complaints from a group of shareholders who claimed the Bank of America deal had prevented other bidders making higher offers for the whole ABN Amro group. The court ruled that it was unacceptable for it to sell LaSalle without seeking approval from shareholders.
The Dutch bank is now considering its options and is expected to put out an update on its position to the market today. Although the London market is closed for the May Day bank holiday today, both European and US markets will be open as usual. ABN is keen to persuade the RBS consortium to make its offer unconditional.
A deal with the RBS consortium would be expected to generate greater synergies. However, Barclays claims that its offer carries less regulatory, litigation and financing risks.
There also remains the possibility that other bidders may yet enter the fray. The Spanish bank BBVA and the French banks Société Générale and BNP Paribas, are also believed to be considering their options.
It remains in all the parties' interests to close a deal as soon as practicable. Several of ABN Amro's clients have already put their contracts with the bank under review as a result of the current battle. The longer the saga stretches on, the greater the chance of further value being eroded from the ABN business.
Regardless of the outcome, Santander may be set to lose Bank of America as its joint venture partner in Brazil. The US bank is believed to be furious about Santander's involvement with the RBS consortium, and has threatened to sever its ties with the Spanish bank.
Elsewhere, rumours emerged yesterday that RBS's Direct Line and Churchill insurance businesses are being lined up for a sale. The companies, which together are the largest personal lines general insurance business in the UK, could fetch up to £8bn in the event of a sale - the proceeds of which could be used to help fund its purchase of LaSalle.

Post Online - Norwich Union joint venture sets out top 10 aim

Post Online - Norwich Union joint venture sets out top 10 aim: "Norwich Union joint venture sets out top 10 aim"

HSBC Bank and Norwich Union have today announced plans for the creation of a joint venture, under the "HSBC Insurance" brand, that aims to be a top-10 player in the UK general insurance industry.
Under the terms of the planned joint venture, HSBC Bank and Norwich Union will underwrite and distribute general insurance products to HSBC's 10.2 million customers in the UK.
Dyfrig John, chief executive officer of HSBC Bank, said: "The proposed joint venture will bring together, in HSBC and Norwich Union, two of Britain's most trusted brands. We believe that combining HSBC's distribution network and Norwich Union's underwriting and customer management capabilities will create one of the best general insurance services the market has to offer.
"It would be fair to say that HSBC has historically punched below its weight in insurance but we have shown before that our customers want to stay with us if we offer well serviced, good value products. The relationship with Norwich Union will offer customers a broad product range, great service and another compelling reason to make HSBC their preferred supplier for the full range of financial services."
Norwich Union and HSBC have had an underwriting relationship for 23 years. At present, HSBC distributes protection, home, travel and car insurance products created by Norwich Union. The planned joint venture will strengthen and deepen this relationship.
Simon Machell, chief executive of Norwich Union Insurance, said: "I am excited that we are continuing to grow our relationship with HSBC. A closer association with HSBC will be excellent news for Norwich Union and its staff, and further strengthens our position as the insurance partner of choice for today's leading brands.
"This joint venture presents an excellent opportunity for us to combine our general insurance expertise with HSBC's strong brand, to help them maximise the value of their general insurance portfolio. Customers are increasingly turning to trusted brands for their insurance needs and by leveraging the HSBC brand we will create a significant new force in the UK insurance market."
As well as creating a joint venture, HSBC intends to sell Hamilton Insurance Company and Hamilton Life Assurance Company to Norwich Union's parent Aviva.
The Hamilton companies are currently owned by HFC Bank, a subsidiary of US-based HSBC Finance Corporation. Hamilton Insurance Company and Hamilton Life Assurance Company provide primarily a range of protection insurance products and had gross assets of £180 million and £176 million as at 31 December 2006 respectively.
Clive Bannister, HSBC's group managing director, Insurance, said: "HSBC has set a target to double the contribution to global profits made by our insurance operations. Creating preferred strategic partnerships with leading general insurers is a key element of that plan. In the UK, an estimated £1 in every £5 of financial services expenditure is spent on insurance. That is why we have chosen Norwich Union Insurance, the leading UK insurer with whom we already have a strong working relationship, to help HSBC satisfy its customers' insurance needs."
All of the proposals remain subject to finalisation of definitive documentation as well as regulatory and other consents. The level of capital to be contributed by each party to the joint venture will be agreed and confirmed at a later date.

Post Online - Norwich Union joint venture sets out top 10 aim

Post Online - Norwich Union joint venture sets out top 10 aim: "Norwich Union joint venture sets out top 10 aim"

HSBC Bank and Norwich Union have today announced plans for the creation of a joint venture, under the "HSBC Insurance" brand, that aims to be a top-10 player in the UK general insurance industry.
Under the terms of the planned joint venture, HSBC Bank and Norwich Union will underwrite and distribute general insurance products to HSBC's 10.2 million customers in the UK.
Dyfrig John, chief executive officer of HSBC Bank, said: "The proposed joint venture will bring together, in HSBC and Norwich Union, two of Britain's most trusted brands. We believe that combining HSBC's distribution network and Norwich Union's underwriting and customer management capabilities will create one of the best general insurance services the market has to offer.
"It would be fair to say that HSBC has historically punched below its weight in insurance but we have shown before that our customers want to stay with us if we offer well serviced, good value products. The relationship with Norwich Union will offer customers a broad product range, great service and another compelling reason to make HSBC their preferred supplier for the full range of financial services."
Norwich Union and HSBC have had an underwriting relationship for 23 years. At present, HSBC distributes protection, home, travel and car insurance products created by Norwich Union. The planned joint venture will strengthen and deepen this relationship.
Simon Machell, chief executive of Norwich Union Insurance, said: "I am excited that we are continuing to grow our relationship with HSBC. A closer association with HSBC will be excellent news for Norwich Union and its staff, and further strengthens our position as the insurance partner of choice for today's leading brands.
"This joint venture presents an excellent opportunity for us to combine our general insurance expertise with HSBC's strong brand, to help them maximise the value of their general insurance portfolio. Customers are increasingly turning to trusted brands for their insurance needs and by leveraging the HSBC brand we will create a significant new force in the UK insurance market."
As well as creating a joint venture, HSBC intends to sell Hamilton Insurance Company and Hamilton Life Assurance Company to Norwich Union's parent Aviva.
The Hamilton companies are currently owned by HFC Bank, a subsidiary of US-based HSBC Finance Corporation. Hamilton Insurance Company and Hamilton Life Assurance Company provide primarily a range of protection insurance products and had gross assets of £180 million and £176 million as at 31 December 2006 respectively.
Clive Bannister, HSBC's group managing director, Insurance, said: "HSBC has set a target to double the contribution to global profits made by our insurance operations. Creating preferred strategic partnerships with leading general insurers is a key element of that plan. In the UK, an estimated £1 in every £5 of financial services expenditure is spent on insurance. That is why we have chosen Norwich Union Insurance, the leading UK insurer with whom we already have a strong working relationship, to help HSBC satisfy its customers' insurance needs."
All of the proposals remain subject to finalisation of definitive documentation as well as regulatory and other consents. The level of capital to be contributed by each party to the joint venture will be agreed and confirmed at a later date.

Banks seek bidders for RBS insurance subsidiaries – Mail on Sunday - News - Auto Industry

Banks seek bidders for RBS insurance subsidiaries – Mail on Sunday - News - Auto Industry: "RBS Insurance is the second-biggest general insurer in Britain, with 26 million policyholders, and is the country’s largest motor insurer, with operations in Spain, Italy and Germany as well. It employs 18,000 staff, and includes the Direct Line, Churchill, Privilege, Green Flag and NIG brands."

Latest News | News | Hemscott

Latest News News Hemscott: "RBS lining up bidders for Churchill and Direct Line - report"

LONDON (Thomson Financial) - Royal Bank of Scotland Group PLC is lining up potential bidders for its Direct Line and Churchill insurance operations, the Financial Mail on Sunday reported.
Investment banks have approached a number of potential buyers for the insurance businesses, which made a 750 mln stg profit last year and could generate sale proceeds of 8 bln stg, the newspaper said.
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Some of the biggest names in investment banking, including UBS, Morgan Stanley and JP Morgan, are trying to find a buyer for the businesses, although the newspaper said it was unclear whether RBS had given its consent for this.
'We have no plans to dispose of Direct Line or Churchill,' the Financial Mail quoted an RBS spokesman as saying.
Some analysts suggest RBS may need to boost its balance sheet by up to 7 bln stg following a possible takeover of Dutch bank ABN-Amro Holdings NV by a consortium involving the Edinburgh-based bank.
RBS Insurance Services also includes Privilege, Green Flag Motoring Assistance, NIG and a number of other businesses.

World Duty Free to overhaul identity for Heathrow Terminal Five - Brand Republic News - Brand Republic

World Duty Free to overhaul identity for Heathrow Terminal Five - Brand Republic News - Brand Republic: "World Duty Free to overhaul identity for Heathrow Terminal Five"

LONDON - Airport retailer World Duty Free is to overhaul its brand identity with the aid of design agency JHP Design, with the results to be unveiled at London's Heathrow Terminal Five, when it opens next year.
The retailer, which has 65 stores across seven major UK airports, plans to unveil a new "brand badge" for seven of its outlets, which it hopes will appeal to new and existing customers at Heathrow Terminal Five, when the multimillion pound hub opens in 2008.


JHP Design, which has developed the store redesigns, said the image overhaul had to attract "the most diverse customer base on earth" because of its location at one of the busiest airports in the world.
Mark Riches, managing director of World Duty Free, said: "We needed to create a brand that was fit for the 21st century and which had the ability to tempt all consumers with a modern, stylish and simple identity."
World Duty Free, which has been operating since 1997, has outlets at Heathrow, Gatwick, Stanstead, Edinburgh, Aberdeen, Glasgow and Southampton airports.
Heathrow Terminal Five is set to handle around 30m passengers a year when it is fully functional in 2015.

Norwich Union launch TV ad campaign for private insurance - Brand Republic News - Brand Republic

Norwich Union launch TV ad campaign for private insurance - Brand Republic News - Brand Republic: "Norwich Union launch TV ad campaign for private insurance
by Joanne Payne Brand Republic 08-May-07, 14:05
LONDON - Norwich Union Healthcare is launching a new TV advertising campaign to promote its Private Healthcare product Health Solutions, offering free dental and optical cover for the first year to customers who take out a policy.
The ads are due to air from today for a month before returning to the screens later in the year. The campaign will be supported by a range of online advertising, emails, direct mail and door drop activity. "

Insurance Age - Brokers uncertain over the future state of play

Insurance Age - Brokers uncertain over the future state of play

Brokers uncertain over the future state of play
With this year's British Insurance Brokers' Association conference in London just around the corner, Insurance Age conducted an online poll of readers on what their thoughts were on consolidation, training in the industry and the importance of the internet.

WHAT YOU SAID ON TECHNOLOGY
Imarket gets a bit of a pummelling from brokers in our survey with three quarters of respondents not using the system on a regular basis. As you will see from the responses below this seems to be mainly due to the fact that it is still seen as being too slow, lacking in products and having long quotation forms. In answer to the question 'in your opinion, how effective is imarket?', the majority thought it was 'slightly' or 'not very' effective.
It is however encouraging to see that so many brokers now have websites, although this figure drops drastically when the question of business transacted through websites is asked, with only 30% of brokers currently doing so.
BROKERS' COMMENTS ON IMARKET
- "Imarket is far too slow and time consuming"
- "It is only slightly effective, because it is too complicated to use"
- "It's OK for personal lines"
- "It is used purely as a portal into insurer sites, as its quote forms are too long. I do not have confidence in the system - although with Fortis and MMA now onboard, I expect things to improve"
- "Needs greater support and more products"
- "Long-winded forms are not user friendly. Poorly designed web pages"
- "Far too slow and time consuming"
YOUR COMMENTS ON INSURERS' SERVICE LEVELS
A real mixed bag here from the broker respondents, but with most insurers in the market receiving praise from their broker partners. Top of the pile in terms of popularity was the troubled NIG, which goes to show there is still life in the old dog yet, especially at grass roots level.
NIG was closely followed by broker-focused insurer Fortis and the UK's number one insurer, Norwich Union. What do all of these insurers at the top of the tree have in common? This is an easy answer - they have helpful and knowledgeable staff.
However, insurers should be warned that a significant number of brokers in our survey agreed that "no one is outstanding", which indicates that there is still room for improvement.
INSURERS THAT WERE RECOGNISED FOR THEIR SERVICE
- "NIG - good local service, reasonable underwriting and quick responses"
- "Fortis generally provides a prompt and efficient service, and it does not use offshore call centres"
- "NIG - excellent quote turnaround on the commercial side"
- "MMA is friendly, co-operative, flexible and professional"
- "Hiscox - knowledgeable with flexibility and authority, and is backed-up by efficient systems"
- "Allianz - good service and good rates with a one-to-one approach".

eMarketer.com - Business Crawls onto Web 2.0

eMarketer.com - Business Crawls onto Web 2.0: "Business Crawls onto Web 2.0

MAY 1, 2007

Tiny steps toward more public communication.

The buzz around collaborative Web 2.0 technologies keeps going, and it is easy to think that every firm now has a blog, a wiki and an RSS feed.

In fact, a global survey of internal and corporate communications professionals found that more than half use blogs, online video and RSS, or plan to do so in the next 12 months.
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The Melcrum study of communications at large firms also found more than 40% are using podcasts and social networks, or say they are planning to do so.

Other data suggest that while a lot of firms say they plan to start blogging, that remains a matter of intent, not reality. Moreover, few companies have public blogs. Those that do appear to blog mainly for internal communications.
Socialtext tracks public blogging by Fortune 500 firms and Global 1000 firms. The ongoing study, headed by Chris Anderson of Wired, currently credits 8% of the Fortune 500 with public blogs, and just 4% of the Global 1000.
Public blogging by Fortune 500 firms has actually doubled since April 2006.

However, "doubling" does not indicate an explosion of public blogging.
The word "public" is key here. Although firms may use Web 2.0 for internal communications, putting company details in plain view for second-guessing by armchair CEOs still lacks appeal. Responses in the Melcrum study confirmed this.
Almost half of respondents agreed that employees discussing their organization online posed a significant risk to the corporation's reputation. Another 70% said that they had no guidelines or policies relating to blogging or other social-media tools, indicating that they were unprepared for public-facing communications.
Social media are well-suited to internal communications, with communications professionals believing they help with employee engagment and internal collaboration.

Firms looking to open two-way dialogue with senior executives, however, need to decide who they are willing to have on the other side of the conversation. "

Coca-Cola plans second assault on water market - Brand Republic News - Brand Republic

Coca-Cola plans second assault on water market - Brand Republic News - Brand Republic: "Coca-Cola plans second assault on water market"

LONDON - Coca-Cola is gearing up for a second offensive on the European water market, three years after it was forced to withdraw its Dasani brand.
According to industry insiders, the drinks firm will roll out Chaudfontaine, a local water brand it owns in Belgium, to the UK and the rest of Europe. The brand is expected to launch by the end of this year.

The development of a pan-European water brand marks a change in strategy for the drinks firm, which has previously focused on local brands in its key European territories.
Coca-Cola acquired the Chaud-fontaine brand in 2003 in a joint venture between bottler Coca-Cola Enterprises Belgium and Coca-Cola in Atlanta. It is currently sold in Belgium with some distribution in France and The Netherlands.
The company has been keen to re-enter the bottled-water market in Europe since the Dasani fiasco. The product was withdrawn from the UK and its roll-out in Europe cancelled after the purified tap water was found to be contaminated with bromate traces.
The water category grew 11% to £643m in take-home sales last year, according to the Britvic Soft Drinks Category Report 2007.