Consortium keeping options open on ABN: Fortis

By Emma Davis

BRUSSELS (Reuters) - The group of banks led by Royal Bank of Scotland proposing to bid for ABN AMRO AAH.AS has not yet decided whether to launch a formal offer but will make its position clear by Sunday, the chairman of one of the banks said.

"We are still deliberating our position," Maurice Lippens told the annual shareholders meeting of Fortis (FOR.BR)(FOR.AS) on Wednesday.

Fortis and its allies RBS (RBS.L) and Spain's Santander (SAN.MC) proposed a bid of 71 billion euros ($95.5 billion) last month for Dutch bank ABN AMRO, but not made a formal offer.

The consortium has so far been rebuffed by ABN management, which has agreed to an all-share takeover by Britain's Barclays (BARC.L) currently valued at 63 billion euros.

Lippens said the consortium had not yet determined what to do because of a legal dispute over the sale of ABN's U.S. arm LaSalle Bank.

"That is why today we cannot take a definite position ... Rest assured, we are considering every option because it's a minefield indeed," Lippens said.

RBS and its partners have said they want to trump Barclays' offer, but only if they can cancel ABN's related sale of LaSalle to Bank of America (BAC.N). That deal was frozen by a Dutch court earlier this month.

Lippens added that buying part of ABN AMRO would fit neatly with Fortis's strategy, but was not necessary to meet its long-term targets.

ABN AMRO shares were barely changed at 35.58 euros at 1110 GMT. Barclays shares were 0.8 percent higher at 772-1/2 pence. Fortis was up 0.6 percent at 32.78 euros, RBS 0.9 percent higher at 653-1/2 pence and Santander flat at 13.64 euros.

The Dow Jones Stoxx European banking index was 0.6 percent stronger.

The consortium had previously said it would provide an update on the potential takeover before May 27.

Lippens said the banks would clarify their position on or by that date, the end of a 30-day period in which the consortium said it was considering an offer.

The consortium could put forward a formal offer, withdraw its interest or ask for an extension until the legal dispute over LaSalle becomes clearer.

Fortis said if it decided not to announce an offer or withdraw its interest on Sunday then it would specify a time when such an announcement might be expected.