Shares in Dutch investment bank ABN Amro surged on the Amsterdam stock exchange today as investors reacted to a proposal to break up the group.
ABN Amro confirmed on Wednesday that it had received a letter from British hedge fund TCI, which owns 1% of the company, asking the board to sell, spin off or merge parts of its business.
TCI also claimed in its letter that the acquisition by ABN Amro of Italian bank Antonveneta in 2006 had been too costly and that the bank did not manage its costs effectively, Dutch news agency ANP reported.
TCI also demanded that the issue of breaking up the group be placed on the agenda for discussion at the next general shareholders' meeting.
