Excellent analysis from the Telegraph on the financials for the RBS offer.  Its clearly a gutsy offer, and one of the largest ever in size, and amount of cash component.

No company has ever before attempted to raise €50bn in cash for a takeover.

The consortium will split ABN three ways, meaning that each will have to pay €24bn – more than half Fortis’s €44bn market cap.

Bond financing is difficult for banks, as is raising straight debt, due to capital adequacy regulations.

But a rights issue would have to be the largest ever attempted, topping BT’s record £5.9bn in 2001.

Underwriting would require investment banks, most of which are currently working for Barclays and ABN.

Financing is a far from foregone conclusion.

Source: RBS pounces to thwart Barclays | Markets | Business | Money | Telegraph