Dutch court halts ABN's LaSalle sale

By Reed Stevenson and Gilbert Kreijger

AMSTERDAM (Reuters) - A Dutch court told ABN AMRO on Thursday to freeze its $21 billion (10.5 billion pounds) sale of U.S. unit LaSalle Bank, dealing a blow to its agreed takeover by Barclays Plc and making it easier for a rival group of suitors to bid for the whole of ABN.

Barclays said it would push ahead with its $88 billion merger with ABN, which has the blessing of ABN's management, but sources familiar with the matter said the Royal Bank of Scotland Group Plc would go forward with a counter-bid for LaSalle against the $21 billion being offered by Bank of America Corp. in order to clinch the Netherlands' biggest bank.

Judge Huub Willems' decision at the Dutch commercial court, delivered to a packed courtroom in a canal-side building in Amsterdam, could trigger a complicated legal battle.

Bank of America said after the ruling it would take "all necessary steps" to protect its legal rights over LaSalle. Bank of America is entitled to a potential $200 million break-up fee if the LaSalle deal is scrapped. Barclays also may sue if its deal flounders, sources familiar with the matter said.

Investors, hedge funds and RBS, along with its consortium partners Santander and Fortis, had demanded that ABN put the LaSalle deal to a shareholder vote since it made it difficult for others to counter-bid for the whole of

ABN.

The consortium has said that it is willing to pay as much as 72 billion euros for all of ABN, and will be allowed under Dutch regulations to make a public offer for the company as early as Friday.

Dutch investor group VEB, with the support of shareholders representing up to 20 percent of ABN's shares, took its case to the Dutch commercial court in Amsterdam Saturday, asking for an injunction against the sale of LaSalle.