Dutch central bank's ABN Amro warning

Updated 08.59 Thu Apr 19 2007

Keywords: Barclays, Dutch, Royal Bank of Scotland, ABN Amro

A takeover bid for ABN Amro by a Royal Bank of Scotland-led consortium would be "risky and complicated", the Dutch central bank has warned.

In a statement, De Nederlandsche Bank (DNB) said an offer from the consortium would "constitute a strong risk-increasing and complicating factor" and that it would examine any formal approach with "meticulous care".

The RBS-led consortium says it has met with DNB representatives and is "confident it can address" the issues raised

The consortium includes Belgium-based Fortis and Spain's Santander.

It had been hoping to put in a rival bid to UK banking giant Barclays which is currently in £89 billion talks with ABN and has until the end of the week to agree any merger.

However, DNB's comments will be seen as a serious blow given that Dutch regulators must consult with the Dutch central bank when deciding whether to approve a takeover of one of the nation's top banks.

The RBS-led consortium says it has met with DNB representatives and is "confident it can address" the issues raised.