NAB may buy ABN Amro units

Friday 11th July 2008

National Australia Bank (NAB) said it is in talks to buy the Australian and New Zealand investment banking units of ABN Amro from Royal Bank of Scotland.

The transaction would be subject to due diligence and there is no certainty a deal will be done, the bank said in a statement today.

Acquiring the units would give NAB a stake in brokerage ABN Amro Craigs alongside its existing Bank of New Zealand unit. ABN Amro also operates wholesale corporate and investment banking operations in Australia and New Zealand.

ABN AMRO Craigs is New Zealand's largest full-service investment advisory firm with 17 branches throughout the country, according to its website. It is owned 50-50 by senior employees of the firm and ABN Amro Holdings.

Bank of Scotland acquired ABN Amro assets last year for about 14 billion euros.

Also today, NAB said it would issue about 34.85 million shares at $27.26 apiece through a dividend reinvestment plan.

By Jonathan Underhill

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