Barclays holders take up shares in clawback

26 July 2007

Barclays Bank shareholders have taken up 154 million of the 230 million shares placed by the firm in its clawback offer, the British bank has announced.

The take-up equates to a cash injection of $2.35 billion for Barclays should its buyout bid for ABN Amro be successful.

Furthermore, the high demand for the shares means that Barclays' new Asian investors, China Development Bank (CDC) and Singapore state investor Temasek, will not be as large as had previously been speculated.

Barclays announced the clawback offer on Monday with the intention of limiting the dilution to shareholders after CDC and Temasek invested a total of $18.5 billion in Barclays.

The clawback offer has enabled Barclays to increase its bid for ABN Amro to $94.4 billion and to increase the cash component of the offer.

Should Barclays' offer for ABN Amro be accepted CDC and Temasek would hold stakes of 6.7 per cent and 2.5 per cent respectively.

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