Analysis and commentary by Echo Research. This article and further information is at: www.echoResearch.com

Barclay's tentative takeover approach for Dutch bank ABN Amro over the weekend was enthusiastically reported by a media hungry for a new mega deal. Coverage was straightforward, with some support for Barclays: "With its rapidly growing investment bank, highly respected management and well-known brand, (Barclays) has long been considered the ideal partner" (Daily Telegraph, 19/3). While Barclays' positioning as a 'white knight' to prevent ABN Amro from being broken up and sold off was unquestioningly reported by most, it did not fool everyone. "Barclays may be presenting itself as the 'white knight' to help out an embattled ABN, but in essence the talks are nakedly opportunistic" (Daily Telegraph, 19/3).

Despite the interest in the deal, doubts were raised over its fruition, as analysts predicted "an awful lot of black knight bidders likely to be very interested" (timesonline, 19/3) in taking over ABN Amro. Others pointed out that "buying ABN Amro would not be simple" (FT, 19/3), highlighting a lack of synergies, the sensitivities in taking over a Dutch national icon, and ABN's likely defence plans. If Barclay's weekend positioning was to flush out the media before entering into formal negotiations with ABN Amro on Tuesday, it succeeded very well.