Rights issue rumors slammed by Barclays

25 April 2008

Bosses at Barclays have assured shareholders that there are no plans for a new rights issue from the bank.

Speaking at the firm's annual general meeting, chairman Marcus Agius and head of Barclays Capital Bob Diamond said that there were no pressing capital concerns which would cause the value of shares to be diluted

The comments follow the admission this week from rivals RBS that balance sheet worries have necessitated a rights issue worth over $20 billion.

Ironically, last year's takeover of ABN Amro by a consortium headed by RBS - a deal that was hotly competed for by Barclays - has proved a major financial pressure point for the Scottish bank.

Sub-prime write-offs, which have cost both banks billions of dollars, also necessitated the rights issue - which was announced at RBS' annual meeting earlier this week.

"[It] is rubbish," Mr Agius said of the rights issue rumor.

"Some banks have better business portfolios than others and some banks perform better than others."

Mr Diamond was also quick to point out differences between Barclays and its Scottish rival to shareholders.

"There is enough information there to show the differences [between the banks] - clearly it is a different situation," he commented.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development