Barclays/ABN: the long game

Barclays should hold its nerve over ABN Amro. The UK bank might be tempted to increase its E64bn all-share offer for its Dutch peer. But it can’t hope to match the E71bn bid from the consortium of Fortis, Royal Bank of Scotland and Santander, especially now that the rival group is offering 93% cash. Its best strategy is to wait and hope for the worst – for the RBS crew. Sure, Barclays has scope to improve its terms. It could inject cash into its offer by squeezing its capital ratios. It might b...