| last updated: Thursday 19 June 2008, 19:09pm |  Print this page |
Barclays hints at £4bn cash boost
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| Barclays |
Banking giant Barclays has fuelled speculation that it is to seek a £4 billion cash injection from overseas investors.
The bank is said to be in discussions with investors including the China Development Bank and Temasek, a Singaporean government-backed fund - both nursing paper losses from the stakes they bought in Barclays last year.
The group is reportedly looking to bring on board three investors for its plans.
Barclays is thought to be keen to prevent the holdings of existing shareholders from being diluted by giving them a chance to buy shares, but the sovereign wealth funds will underwrite the placing by buying up any unwanted stock.
The group remained tight-lipped on details of the potential fund raising move later, saying only that a further announcement will be made if it decides to go ahead with the plan.
Barclays also sought to reassure over trading, stressing that profits before tax in May were 'well ahead' of last year's monthly run rate.
Its retail and commercial banking divisions were delivering 'strong growth in profits', while investment banking profits were in line, added Barclays.
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