NYSE Euronext is investigating suspicious trading in shares of ABN Amro, the Dutch bank, before its merger talks with Barclays became public on March 19.
The transatlantic stock exchange operator is examining a surge in trading of American Depositary Receipts (ADRs) in ABN Amro, which are listed on the New York Stock Exchange, in the days before merger talks with Barclays were announced. About 2.68 million ADRs were traded on March 12 and another 1.05 million on March 15, compared with an average daily volume of 513,232 in the first ten weeks of the year.
NYSE Euronext will pass its findings on to the Securities and Exchange Commission (SEC). Unless it proves beyond reasonable doubt that there is nothing suspicious about the trading, the SEC is expected to investigate.
The future of the Barclays deal with ABN hangs on a ruling to be handed down in the Dutch Supreme Court on Friday, on whether shareholders should be allowed to vote on ABN’s decision in May to sell LaSalle, its Chicago-based subsidiary, to Bank of America.
Offloading LaSalle was seen as an attempt by ABN and Barclays to block a rival approach from an RBS-led consortium for the Dutch banking group. RBS had been clear that the consortium’s offer was valid only if the group included LaSalle.
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Given the chance to vote, shareholders are likely to block the sale in order to accept the consortium’s €71 billion (£48 billion) offer ahead of the €64.8 billion offered by Barclays.
If the court decides that shareholders should not be allowed to vote on the sale, Barclays will proceed with its agreed merger with ABN. If the court decides that shareholders can vote, ABN will face a court battle with Bank of America in the United States over alleged breach of contract.