The board of ABN Amro hinted yesterday that it was considering scrapping its support for Barclays’ agreed €64.8 billion (£43.5 billion) takeover, in the face of a superior offer from a rival consortium for the Dutch bank.

ABN said that it was in discussions with Barclays over the “implications of the consortium’s revised proposed offer”, after the Royal Bank of Scotland-led group on Tuesday increased the cash component of its €71.1 billion offer to 93 per cent.

ABN is officially continuing to recommend the lower takeover offer from Barclays and sources have said that the Dutch bank would hold off on any talks with the British bank until July 23, the final deadline for any raised bids.

However, the sources said yesterday that ABN’s move to hold talks with Barclays could indicate the Dutch bank was considering changing its recommendation.

Sources close to Barclays have indicated that the British bank is unlikely to increase its all-share bid, or even sweeten it with more cash.

John Varley, Barclays’ chief executive, has argued that the bank’s approach offers ABN’s shareholders better long-term growth potential.

However, with as much as half of ABN’s shares thought to be held by hedge funds, which take a shorter-term view than most institutional investors, a higher-cash offer is likely to be favoured.

Both bidders received a boost yesterday when VEB, the Dutch investor group, withdrew demands for a court to appoint three new independent members to the ABN board.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive