Barclays post ABN: Pyrrhic victor

Victory can be more damaging than defeat. It looks that way for Royal Bank of Scotland. The UK bank, with bid partners Belgo-Dutch Fortis and Spain’s Santander, is on the verge of breaking the record for the world’s biggest bank takeover – the E70bn purchase of Holland’s ABN Amro. But that may prove more painful than defeat will be to Barclays, the underbidder. RBS is overpaying. At nearly 25 times this year’s earnings, according to JP Morgan, it is paying a whacking multiple. What’s more, the ...