City & Corporate: In the news ... Barclays

Barclays is embarking on a cash-raising scheme. It has been expected to follow in the footsteps of RBS and HBOS for some time and has revealed it is 'actively considering' the move. Negotiations with sovereign investment funds are said to be already taking place.

The media reaction?

It has been well received. Barclays' press team did well to get the message out early and avoid further rumour stories. Discussions with China Development Bank and Singapore's Temasek (both of which already own shares) have been mooted. But the sense was that the City was waiting for Barclays to make a move. Barclays allayed any fears by announcing strong trading during May in the same release.

Who are the PR players?

Barclays' big internal investor relations and media teams. Brunswick, the bank's retained agency, will certainly have a role to play as the exact story of the scheme unfolds. It will also have interested incoming corporate affairs director Howell James, who replaces the popular Stephen Whitehead in September. Whitehead joined Prudential earlier this year in a board-level role.

Anything to learn?

Barclays will have watched money-raising schemes at other financial institutions with interest. RBS' record-breaking £12bn rights issue went off to much celebration, although it fell a little short in the end. It was still largely welcomed by investors and the media, though. Barclays will be pleased that its announcement saw shares leap as much as 13 per cent on Monday. The presence of Sovereign Wealth funds was seen as a promising sign of future growth by investors.

£4bn - Amount that Barclays wants to raise.

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