Shares surge over Fortis and ABN Amro merger speculation

Shares of Belgian-Dutch financial services company Fortis and Dutch banking group ABN Amro have increased amid rumors of a potential merger.

As reported in Reuters, Fortis shares were up 0.7% at E32.99 per share following news of the potential merger. In Amsterdam, ABN Amro shares were also up by 0.7%, to E24.90.

However, both companies have declined to comment on the merger speculation.

Analysts cited in Reuters claim that the merger would make financial sense. We conservatively estimate potential cost synergies of E1.6 billion per annum, possibly increasing the share price of both institutions by 12%, said a broker at Keefe, Bryette & Woods.