ABN Amro and Barclays announced a merger agreement, worth more than $91 billion, that would create the world's largest institutional asset manager.

As a part of the deal, ABN Amro has also agreed to sell its Chicago-based LaSalle bank to Bank of America for $21 billion.

Barclays will offer 3.225 of its shares for each ABN Amro share. According to Barclays, the deal represents a 33% premium to the price of ABN Amro shares in mid-March, when talks between the companies were first announced.

Pressure mounted during the talks, after Barclays' competitor the Royal Bank of Scotland, along with asset managers Fortis and Santander Central Hispano, expressed interest in acquiring ABN Amro. ABN Amro says it plans to meet with Royal Bank of Scotland representatives to discuss its possible bid and will consider any offers that emerge from the meeting.

The sale of Chicago-based LaSalle Bank is expected to be completed in late 2007, but according to the agreement, ABN Amro may accept a higher offer within 14 days of the agreement. Bank of America also has an option to match a higher offer or receive a termination fee of $200 million, under certain circumstances.

ABN Amro Holding NV and Barclays PLC Monday announced a €67 billion ($91.07 billion) merger agreement that would create the world's largest institutional asset manager and one of its top-five banks.

Barclays said it will offer 3.225 new Barclays shares for each ABN Amro share held, valuing its bid at €36.25 a share. The combination is expected to generate annual synergies of €3.5 billion by 2010, the banks said.

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