Barclays confirms it is considering cash call

  • Story by: Catherine Couch
  • Magazine: MortgageAdviser
  • Published Monday , June 16, 2008

Barclays has confirmed it is "actively considering" placing a pre-emptive offer to existing shareholders to raise cash.

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In a trading update, the lender responded to recent media speculation around a rights issue.

It stated: "The board of Barclays confirms this is currently under active consideration. A further announcement will be made in the event that the Board of Barclays decides to pursue such an equity issuance."

This is in response to reports that Barclays was in talks with foreign investors to raise $4bn.

Royal Bank of Scotland (RBS) has already raised 95 per cent of its £12bn rights issue, while HBoS is looking to raise £4bn.

The statement also said that Barclays Group profit before tax in May was "well ahead" of the monthly run rate for 2007.

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