The Dutch Government Wants to Further Reduce its stake in ABN AMRO from 30.5 to about 20 percent. The Government Will Thus Retain its Influence when it comes to major social issues.
The Government’s Plan has leg to reduce its stake in ABN AMRO for some time. The Bank was Nationalized in 2008 due to financial problems. ABN AMRO was in Danger of Collapsing Due to Problems at Parent Company Fortis.
Earlier This Year, The Government Already Reduced Its Stake from 40.5 to 30.5 percent. Accordance to the NLFI, The Foundation that Manages Government Interests in Financial Institutions, IT was a good time for that, Given the Circumstances on the Stock Exchanges. That round of share sales then yielded the government almost 1.6 Billion euros.
Because its stake fell to less than a third with that share sale, The Government Lost a Large Part of its Influence. As a result, ABN AMRO No Longer had to ask for permission for every major investment or share issue.
Reducing the stake to 20 percent does not cause major changes. The Government Retains Its Influence When It Comes to Major Social Issues. The Next Important Threshold is 10 percent.
Detailed information about the sale of Shares Cannot Be Released because it could influence the sale “and thus harm the interests of the state,” writes outgoing minister Eelco Heinen (finance). This Round of Sales is the Fourth Since ABN AMRO’s IPO in 2015.