Barclays chief in SA for talks with Absa
--------------------------------------------------------------------------------
Financial Services Editor
BARCLAYS` plan to buy a majority stake in banking group Absa takes a step forward today when the UK bank`s chairman, Matt Barrett, arrives in SA for a visit that will see him meeting with Absa chairman Danie Cronjé as well as government and regulatory officials.
Barrett replaced Sir Peter Middleton earlier this year as chairman of Barclays. Before that he was CEO of the bank.
Barclays` proposed bid for Absa is expected to feature high on the agenda of the two-day visit.
Although the trip was planned as part of Barrett`s tour of the bank`s global operations after his appointment as chairman, a spokesman said he would also use the opportunity to meet with Cronjé and `relevant government and regulatory officials`.
Last month Barclays said it planned to bid for a majority stake in Absa. The deal would cost in excess of R20bn, based on indications that Absa`s board had agreed to a preliminary offer of between R65 and R70 a share for as much as 60% of the bank. Some analysts expect a final offer to exceed R70. Absa`s shares have since surged to about R65.
Reserve Bank and government approval is necessary before Barclays can proceed with its bid. It has not made a formal offer to shareholders as it still has to finalise a due-diligence probe into Absa, but Barrett is likely to get an indication from the Reserve Bank and the government on whether they are open to an offer.
Allowing Barclays to proceed would be a shift from current policy of keeping the four largest banks in local hands.
The deal also has to go to competition authorities for approval, a three-month process .
President Thabo Mbeki has already welcomed the bid, saying it is a vote of confidence in the local economy, but the final decision rests with Finance Minister Trevor Manuel.
Barclays head of communications for Africa Jackie Rakitla said Barrett was also unlikely to put a final offer on the table.
` We are still very early in the negotiation process and there is still a lot to be done in terms of that,` Rakitla said.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
