ABN Amro could face legal action over Barclays deal

Hedge fund investor TCI is reportedly planning to take legal action against ABN Amro bank if it fails to talk to potential buyers other than current suitor Barclays.

TCI is pushing for a sale or break-up of ABN Amro.

The Economist last week reported that the legal action could be forthcoming over the deal, and TCI has confirmed this report was accurate to Stock Market newswire AFX News.

Last week ABN Amro entered merger talks with Barclays, which is successful would create the biggest ever European financial services merger and the worlds fifth biggest bank.

A month prior to the merger talks, TCI and fellow activist investor Toscafund called on the Dutch bank to put itself up for sale or make large-scale disposals in an effort to revitalise its flagging share price performance.