This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/7472666.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Barclays plans £4.5bn fundraising | Barclays plans £4.5bn fundraising |
| (40 minutes later) | |
| Barclays has said it is planning to raise £4.5bn ($8.8bn) in a share issue to bolster its balance sheet. | Barclays has said it is planning to raise £4.5bn ($8.8bn) in a share issue to bolster its balance sheet. |
| The firm has sold shares to new investors, such as the Qatar Investment Authority, and existing shareholders including China Development Bank. | The firm has sold shares to new investors, such as the Qatar Investment Authority, and existing shareholders including China Development Bank. |
| Barclays said the fundraising move would "strengthen its capital base". | Barclays said the fundraising move would "strengthen its capital base". |
| It is the latest British bank, following the Royal Bank of Scotland and HBOS, to seek to raise money to ease the impact of the credit crunch. | It is the latest British bank, following the Royal Bank of Scotland and HBOS, to seek to raise money to ease the impact of the credit crunch. |
| Barclays shares rose more than 5% in early trading in reaction to the share move. | Barclays shares rose more than 5% in early trading in reaction to the share move. |
| New investors | New investors |
| The Qatar Investment Authority, the state-owned investment arm of the Gulf state, will invest £1.7bn in Barclays, making it a substantial new shareholder. | The Qatar Investment Authority, the state-owned investment arm of the Gulf state, will invest £1.7bn in Barclays, making it a substantial new shareholder. |
| A separate Qatari company called Challenger - controlled by Sheikh Hamad Bin Jassim Bin Jabr al-Thani - is to invest £533m in the business. | A separate Qatari company called Challenger - controlled by Sheikh Hamad Bin Jassim Bin Jabr al-Thani - is to invest £533m in the business. |
| Japanese bank Sumitomo Mitsui Corporation, meanwhile, has agreed to buy £500m in new shares. | Japanese bank Sumitomo Mitsui Corporation, meanwhile, has agreed to buy £500m in new shares. |
| We strengthen our capital base and give ourselves additional resources to pursue our strategy of growth John Varley, Barclays chief executive class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23144/one_month.stm">See Barclays shares | |
| The share issue will see existing investors, including China Development Bank and Singaporean investment firm Temasek, top up their holdings. | The share issue will see existing investors, including China Development Bank and Singaporean investment firm Temasek, top up their holdings. |
| The former will buy £136m worth of shares, while the latter will acquire £200m. | The former will buy £136m worth of shares, while the latter will acquire £200m. |
| Barclays has suffered losses from mortgage-backed investments, devalued by the slump in the US housing market, but not on the same scale as many top US and European firms. | Barclays has suffered losses from mortgage-backed investments, devalued by the slump in the US housing market, but not on the same scale as many top US and European firms. |
| It recently gave an upbeat trading report, saying profits in May were well ahead of 2007. | It recently gave an upbeat trading report, saying profits in May were well ahead of 2007. |
| "Through our capital raising, we strengthen our capital base and give ourselves additional resources to pursue our strategy of growth through earnings diversification," chief executive John Varley said. | "Through our capital raising, we strengthen our capital base and give ourselves additional resources to pursue our strategy of growth through earnings diversification," chief executive John Varley said. |
| "We draw strength from the continued resilience of our trading performance." | "We draw strength from the continued resilience of our trading performance." |
| Discount price | Discount price |
| Under the terms of the share issue, all existing investors will have the opportunity to buy additional shares in the business. | Under the terms of the share issue, all existing investors will have the opportunity to buy additional shares in the business. |
| The bulk of the new shares, worth £4bn, are being sold for 282 pence, representing a 9% discount on their value at close of trading on Tuesday. | The bulk of the new shares, worth £4bn, are being sold for 282 pence, representing a 9% discount on their value at close of trading on Tuesday. |
| British banks are tapping their shareholders for extra cash to shore up their financial position as credit markets remain unstable and earnings from key activities - particularly mortgage lending and investment banking - come under real strain. | British banks are tapping their shareholders for extra cash to shore up their financial position as credit markets remain unstable and earnings from key activities - particularly mortgage lending and investment banking - come under real strain. |
| RBS Group has already raised about £12bn while HBOS is looking to raise £4bn. | RBS Group has already raised about £12bn while HBOS is looking to raise £4bn. |
| Barclays led the way in courting foreign investors when it sold a sizeable stake in its business to China Development Bank last year. | Barclays led the way in courting foreign investors when it sold a sizeable stake in its business to China Development Bank last year. |
| The Qatari Investment Authority already has significant interests in the UK, in effect controlling about 25% of shares in supermarket chain Sainsbury's. | The Qatari Investment Authority already has significant interests in the UK, in effect controlling about 25% of shares in supermarket chain Sainsbury's. |