Bladewatch.com

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2381597.ece

The Royal Bank of Scotland-led consortium could invoke a “material adverse change [MAC]” clause to lower the price of its €70 billion offer (£47.2 billion) for ABN Amro if market conditions worsen.

Sources said that RBS and its partners have not yet had any discussions about using the so-called MAC clause, but it is an option if the credit crunch continues to wreak havoc.

A MAC clause allows an acquirer to try to reduce an agreed price for a target or walk away altogether if it can prove that there has been change that has had a material impact on the value of the target.

Further news on the ABN Amro transaction, it will be interesting to see how the deal moves along, we’re getting closer to the shareholders meeting where the issue is meant to be discussed. Very cool.

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