SEC could intervene in Barclays deal

Source: Stock Market Digital

Date :7/25/2007 4:20:18 AM

The US regulator SEC could delay the proposed Barclays’ €3.6 billion ($4.9 billion) share buy-back unveiled yesterday as part of its revised offer for ABN Amro.

The timing depends on approval from the Securities and Exchange Commission (SEC), which Barclays hopes to receive this week after its results.

The SEC, which has restrictions on companies buying back shares until an offer has been declared unconditional, could require Barclays to postpone the buy-back until the offer for ABN closes or lapses, which could be in October.

ABN’s supervisory and executive boards are to meet on Friday to discuss the competing offers after dropping a recommendation for the Barclays bid while seeing how its shares performs.

Barclays shares continued to rise yesterday by 3.5p to 738.5p, valuing its offer at about €68.6 billion, compared with the €71.1bn offered by the rival consortium led by Royal Bank of Scotland.

The UK-based Co-operative Financial Services, which is known for its ethical investing policies, said it did not have an issue with the investment although it added: “We would want to ensure levels of corporate and social responsibilities which are the norm in the UK are not compromised in any way.”

In the coming days, attention is likely to focus on the rival RBS-led offer for ABN, which must have its fundraising approved by shareholders at an EGM on August 6.

July 25 2007