Royal Bank of Scotland (RBS) is today set to launch a €72.6 billion (£49.2 billion) bid for ABN Amro but will put aside up to $2.5 billion (£1.25 billion) to cover potential litigation from Bank of America (BoA).

The Times has learnt that RBS and its partners will offer €38.4 per share for ABN, going head to head against an agreed €66 billion deal from Barclays for the Dutch bank.

The RBS-led group, which includes Spain’s Santander and Fortis of Belgium, had previously said that 70 per cent of its offer for ABN would be made in cash with the remainder paid in RBS shares.

However, it is understood that the trio have now raised the cash component of their bid to make it more attactive to ABN’s shareholders.

Since the group first expressed interest in bidding for ABN, RBS’s shares have fallen from 666p to 642.5p.

The new structure of the offer, which would be the largest ever banking takeover if successful, means that RBS will now have to put more cash into the deal. The majority of the cash was expected to be raised by Santander and Fortis through rights issues. The two banks will launch investor road-shows imminently to drum up support for the rights issues, which are expected to raise more than €35 billion in total.

Today’s offer is the latest twist in a long-running and complex battle for control of ABN.

The Dutch first agreed a deal with Barclays in April which valued ABN at €36.25 per share. As part of the offer, ABN agreed to sell LaSalle to BoA for $21 billion. The deal was frozen by a Dutch court after it emerged that ABN had not sought shareholder approval for the sale of LaSalle. BoA appealed against the decision and launched a lawsuit against ABN to force through the LaSalle deal.

RBS and its partners have since approached BoA directly to break the deadlock over LaSalle. RBS previously made a $24.5 billion bid for LaSalle, which was rejected by ABN’s board.

Talks between the RBS group and BoA are believed to be progressing.

However, RBS has set aside between $1.5 billion and $2.5 billion in case of potential litigation. BoA’s claim against ABN will be heard in New York on June 15 and ABN risks paying out billions of dollars if the court rules in favour of BoA.

Last week Barclays issued a 30-day update on its offer for ABN when it said that it would publish its final offer document within six weeks, with the final deadline on July 4.

The Dutch supreme court is expected to give a ruling on the decision to stop the sale of LaSalle in the first half of July.

RBS, Fortis and Santander all declined to comment.

Bank account

March 19 ABN Amro in exclusive bid talks with Barclays

April 23 ABN agrees to back a €67 billion (£45.4 billion) takeover by Barclays and sells LaSalle, ABN’s US bank to Bank of America (BoA). RBS seeks ways to block LaSalle sale

April 25 RBS consortium proposes €39-a-share offer, valuing ABN at €72.2 billion on condition that LaSalle is retained

May 3 Dutch commercial court blocks LaSalle sale; BoA sues

May 5 RBS-led group submits a €24.5 billion offer for LaSalle as a condition that the three banks buy the rest of ABN. Rejected

May 9 ABN to appeal to the Dutch Supreme Court to overturn the decision to block the sale of LaSalle

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