Aug. 10 (Bloomberg) -- ABN Amro Holding NV shares fell the most in more than a year on concern financial-market turmoil may derail the world's biggest banking takeover.

The shares dropped 1.22 euros, or 3.5 percent, to 33.85 euros in Amsterdam, valuing the bank at 64.6 billion euros ($88.4 billion). Stocks fell worldwide on speculation a credit crunch will stem economic growth and hurt earnings.

ABN Amro, the largest Dutch lender, is the target of a takeover battle between Barclays Plc and a group consisting of Royal Bank of Scotland Group Plc, Banco Santander SA and Fortis. Concern today centered on whether Barclays would withdraw its 62.7 billion-euro bid or Fortis would struggle to finance its portion of the group's 71.9 billion-euro offer.

The market turmoil ``does jeopardize the ABN Amro deal,'' said Mike Trippitt, a London-based analyst at Oriel Securities Ltd. who has a ``buy'' rating on Barclays and Royal Bank stock. ``If you believe the market, the current share prices are telling you the deal isn't going to happen.''

Barclays's bid values ABN Amro at 33.22 euros a share based on today's closing prices, while the offer from the Royal Bank group values the Dutch bank at 38.06 euros a share.

Barclays, Fortis

Jochem van de Laarschot, a spokesman for ABN Amro, said there are ``no new developments in the offer process,'' adding that the bank has ``no significant exposure'' to the U.S. subprime mortgage market.

Barclays and Santander declined to comment.

Royal Bank shareholders today voted 94.5 percent in favor of a resolution approving the takeover and as much as 5 billion euros of financing.

``We are very confident about the financing,'' Fortis Chief Executive Officer Jean-Paul Votron said at Royal Bank's meeting in Edinburgh. ``Every single rumor which was raised was washed away.''

Fortis plans to pay 24 billion euros for ABN Amro's Dutch retail and commercial banks and its asset-management and private-banking units. Fortis shareholders approved the bid on Aug. 6 and backed a 13 billion-euro rights offer to finance its portion.

Sandy Chen, a director at Panmure Gordon Ltd., wrote today that ABN Amro's role as ``the leading sponsor of asset-backed commercial paper in Europe, with an estimated $55 billion in exposure,'' presents a ``separate risk'' for the winner of the takeover battle, given the credit market woes.

``I'd like to stress that both parties have been given detailed access to our books and have performed profound due diligence before they made their offers,'' Van de Laarschot said.

The Dutch bank withdrew its recommendation of the Barclays bid on July 30, saying it's financially inferior to the Royal Bank group's mostly cash offer.

Last Updated: August 10, 2007 12:46 EDT