Barclays in potential US or UK takeover bid

Source: Exec Digital UK

Date :20/05/2008 09:16:11

U.K bank Barclays is considering making a takeover bid for a rival in either the United States or Europe and could try and buy an investment bank, as part of a move to raise capital from shareholders.

Bob Diamond, the head of Barclays' investment bank unit, is thought to have looked at both Lehman Brothers and UBS in the past few weeks, the Telegraph reported on Tuesday.

Other options are a smaller U.K. mortgage bank such as Alliance & Leicester or a deal in Asia or Eastern Europe, the newspaper said.

Aggressive strategy

The newspaper, citing one senior banking source, said that Mr. Diamond, an American, wants to go on the offensive with an aggressive expansion of Barclays Capital after he missed out on the top jobs at Citigroup and Merrill Lynch.

UBS would bring Barclays an equities business and its wealth management and private banking arms, which it would dearly like to acquire, sources said.

Meanwhile Lehman would add to Barclays Capital's existing stronghold in the debt market - which could mean bloody job cuts - but would massively bolster its presence in the US, it said.

Barclays was not immediately available to comment.

May 20, 2008