To fund ABN merger Barclays sells €13.4-billion stake

23 July 2007

Mumbai: Barclays Bank is selling a stake to China Development Bank and the Singapore government''s investment arm Temasek for up to Euro 13.4 billion, after raising its offer for ABN AMRO to Euro 67.5 billion.

Barclays is now putting together finances for what promises to be the biggest banking merger on the planet from all corners of the world.

Of the total Euro 13.4 billion, Euro 3.6 billion is unrelated to the outcome of Barclays'' proposed merger with ABN AMRO, while the remaining Euro 9.8 billion is conditional on the completion of the merger.

The Euro 3.6 billion unconditional investment will be made on August 14, Barclays said in a statement to the London Stock Exchange.

China Development Bank, one of the country''s three policy banks, will initially invest Euro 2.2 billion for a 3.1 per cent stake in Barclays. A further investment of Euro 7.6 billion will be subject to regulatory approval and the completion of the UK bank''s merger with ABN AMRO.

Temasek will pay Euro 1.4 billion for a 2.1 per cent stake in Barclays, and a further Euro 2.2 billion if Barclays'' revised offer is finally approved.