LONDON (dpa-AFX) - British lender Barclays Plc (BARC.L, BCS) has been exploring a potential merger with rival banks including Standard Chartered Plc (SCBFF.PK, STAC.L, STAN.L), as part of wide-ranging contingency plans being weighed by senior board members following pressure from an activist investor, the Financial Times reported citing people familiar with the matter.
The report said that John McFarlane, Barclays chairman, was keen on the idea of a combination with StanChart, at least in theory, and was supported by Gerry Grimstone, who chairs its Barclays International unit.
The report also indicated that a private conversation had taken place between a director at each bank about the potential benefits of such a deal, but no formal or informal bid approach had taken place.
The possible combination with StanChart, which has a 25 billion pounds market capitalisation, is only one of many options being 'kicked around' by Barclays directors in response to the 5.4 per cent interest in the bank acquired recently by Edward Bramson's activist investment fund Sherborne, the report said.
According to the report, Jes Staley, chief executive of Barclays, met Mr Bramson in New York earlier this month and was told by the activist investor that he was still finalising his strategic proposals for the bank.
Bramson was likely to call for Barclays to return to shareholders much of the 25 billion pounds of capital tied up in its corporate and investment banking division by shrinking the long-underperforming unit, the report said.
There has been no formal discussion of the potential combination with StanChart on the Barclays board, the report said.
Copyright RTT News/dpa-AFX