It’s one step forward, two steps back for ABN Amro CEO Rijkman Groenink.
After doing a deal to sell his bank in two pieces to Bank of America and Barclays,
he’s now faced with a court
ruling saying that he’s not allowed to do that without shareholder approval
– something which he knows he can’t get.
The FT reports
that Groenink complained to the Dutch comercial court that ABN Amro had become
a “toy for hedge funds”. In response, TCI, a UK hedge fund, requested
that Groenink be fired within 24 hours.
Shareholders are being well served by the Dutch court system, it would seem
– although net-net the amount of litigation related to this case is almost
certain to skyrocket, given that Bank of America now looks set to mount a lawsuit
against ABN Amro and there’s a good chance that Barclays will too.
Right now, it seems that the $100 billion toy is likely to end up in the prams
of RBS, Santander, and Fortis. Who will be thanking the hedge funds –
for the moment. Sooner or later, however, they’re likely to run into hedge funds
themselves. Live by the law of the hedge fund…