New Issue: ABN Amro sells $460,000 8% knock-in reverse notes linked to Merck

By Angela McDaniels

Seattle, Sept. 7 - ABN Amro Bank NV priced a $460,000 issue of 8% Knock-in Reverse Exchangeable Securities due Sept. 7, 2007 linked to the common stock of Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The company announced on Wednesday it had sold $350,000 of the issue but disclosed a revised size on Thursday.

Payment at maturity will be determined according to the performance of Merck stock. If the stock trades at or below $32.77, the knock-in price, and closes below $40.96, the initial price, investors will receive a number of Merck shares equal to $1,000 divided by the initial stock price. Otherwise, investors will receive par in cash.

Issuer:	ABN Amro Bank NV
Issue:	Knock-in Reverse Exchangeable medium-term senior notes, series A
Underlying stock:	Merck & Co., Inc.
Amount:	$460,000
Maturity:	Sept. 7, 2007
Coupon:	8%, payable quarterly
Price:	Par
Payout at maturity:	If Merck stock closes below the knock-in price of $32.77 during the life of the notes and finishes below the initial price, 24.414 shares of Merck stock; otherwise par in cash
Initial stock price:	$40.96
Knock-in price:	$32.77, 80% of initial price
Exchange ratio:	24.414 shares, at maturity
Pricing date:	Sept. 1
Settlement date:	Sept. 7
Agents:	LaSalle Financial Services Inc., ABN Amro Inc.
Distribution:	Off shelf

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