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| Version 0 | Version 1 |
|---|---|
| Chinese cash fuels Barclays bid | Chinese cash fuels Barclays bid |
| (20 minutes later) | |
| Barclays has raised its offer for the Dutch bank ABN Amro, after striking a deal with the Chinese and Singaporean governments to help fund the move. | Barclays has raised its offer for the Dutch bank ABN Amro, after striking a deal with the Chinese and Singaporean governments to help fund the move. |
| It has said it will now pay 67.5bn euros (£45.4bn; £93.4bn) in cash and shares for ABN. | It has said it will now pay 67.5bn euros (£45.4bn; £93.4bn) in cash and shares for ABN. |
| The China Development Bank and Temasek, the investment arm of the Singaporean government, are to invest 3.6bn euros in Barclays. | |
| And they will invest a further 9.8bn euros if the ABN takeover goes through. | |
| A group led by Royal Bank of Scotland (RBS) is also vying for the Dutch firm. Its current offer is higher than Barclays' revised bid. | |
| Ambitious | Ambitious |
| The BBC's Business Editor Robert Peston revealed on Sunday that the Asian deal was being negotiated. | The BBC's Business Editor Robert Peston revealed on Sunday that the Asian deal was being negotiated. |
| If Barclays acquires ABN, the Chinese state would emerge with a shareholding of 7.7% in the enlarged group. | |
| It has pledged not to raise its stake to more then 9.9 per cent of the group over the next three years | It has pledged not to raise its stake to more then 9.9 per cent of the group over the next three years |
| A smaller stake of about 3% would be taken by Temasek. | A smaller stake of about 3% would be taken by Temasek. |
| The deal was arranged by the leading US private equity house, Blackstone - which recently sold a £1.5bn stake in itself to the Chinese state. | The deal was arranged by the leading US private equity house, Blackstone - which recently sold a £1.5bn stake in itself to the Chinese state. |
| The Chinese state has $1.2 trillion of foreign exchange reserves to invest, much of which has been placed in US Treasuries or government bonds. | The Chinese state has $1.2 trillion of foreign exchange reserves to invest, much of which has been placed in US Treasuries or government bonds. |
| China recently signalled it would be taking a more imaginative and aggressive approach to how it invests hundreds of millions of dollars, including buying significant holdings in overseas companies. | China recently signalled it would be taking a more imaginative and aggressive approach to how it invests hundreds of millions of dollars, including buying significant holdings in overseas companies. |
| The deal with Barclays under negotiation would be the most ambitious manifestation to date of its new boldness as an investor. | The deal with Barclays under negotiation would be the most ambitious manifestation to date of its new boldness as an investor. |
| The idea that the Chinese government could end up with an influential stake in such an important European financial institution as the merged Barclays/ABN could prove controversial. | The idea that the Chinese government could end up with an influential stake in such an important European financial institution as the merged Barclays/ABN could prove controversial. |
| Some Barclays shareholders may be concerned that the Chinese are buying the shares without them being offered to existing shareholders. | Some Barclays shareholders may be concerned that the Chinese are buying the shares without them being offered to existing shareholders. |
| Barclays has also announced that it will buy in several billion pounds of its own shares. | Barclays has also announced that it will buy in several billion pounds of its own shares. |