Barclays steps down. Will not pursue buying ABN Amro

Barclays Bank has stepped down from its efforts to buy out ABN Amro Holding NV. Barclays was facing competition from Royal Bank of Scotland (RBS) Group Plc, in this biggest banking takeover.

ABN Amro investors had tendered about 0.2 percent of their shares to Barclays, based on figures released by the bank. Barclays had offered 62.8 billion euros ($89 billion), while the consortium led by RBS that includes Fortis, a Belgian-Dutch bank, and Banco Santander Central Hispano, Spain's largest bank had placed 72 billion euros ($101 billion) as its offer.

The consortium is apparently going to reshape the business structure at ABN Amro. Royal Bank would handle investment-banking and Asian consumer businesses, Santander will expand into Italy and double its market share in Brazil. Fortis will handle the Dutch consumer-banking arm of ABN Amro and its asset-management and private-banking units.

No reports were available for knowing the impat of the takeover on the diamond business, a comparitively small portion of ABN Amro's total business.