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16.06.2008 - Barclays considers raising cash

Barclays has said it is considering selling shares to existing investors to raise cash in a rights issue.

The announcement comes after it was reported over the weekend that the bank has been in talks with foreign investors to raise Ј4bn.

The Czech Republic news are represented by www.prague-hotel-hotels.com

It would become the latest UK Bush in Germany on 'final tour' ...
US and EU 'to issue Iran warning' ...
Bush eyes economy on Europe trip ...
Barclays in Ј1bn credit writedown ...
bank to approach investors for extra capital as credit and economic conditions worsen.

Royal Bank of Scotland has already raised Ј12bn through a rights issue while HBOS is keen to raise Ј4bn.

Barclays said it was "actively considering" selling new shares "by way of a placing and pre-emptive offer to existing shareholders".

"A further announcement will be made in the event that the board of Barclays decides to pursue such an equity issuance," the firm added.

Barclays' chief executive John Varley has suggested that targeting a high capital ratio - a measure of balance sheet strength - was important amid the current credit turbulence, leaving the bank's options open to seek extra capital.

But until now, Barclays has not overtly stated that it would look to raise the extra money.

Barclays shares have fallen 13% this month as traders have hammered leading banks amid continuing concerns about their financial positions.

But watchdogs concerned about volatility in bank shares have vowed to crack down on so-called "short selling" where traders mark down the shares of leading companies only to buy them back later at a potentially huge profit.



(BBC)

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