Stocks News
- Chinese bank invited to take Barclays stake
Date: 24-Jul-2007 Sources: (People's Daily)
The China Development Bank (CDB), a major state-owned policy bank, signed a stake-purchase agreement and a cooperation memorandum with Barclays PLC of Britain in Beijing on Monday.
According to the deal, the CDB will purchase a three-percent stake in Barclays for three billion U.S. dollars and will have a position on Barclays' board of directors.
The money injected by the CDB will be used to support Barclay's attempt to purchase ABN Amro, the largest Dutch bank.
If Barclays succeeds in purchasing ABN Amro, the CDB will invest a further eight billion to 10.5 billion dollars, raising its stake to more than five percent.
According to the cooperation memorandum just signed, Barclays will provide management and staff training for the CDB.
'This is the beginning of a long-term cooperation between the two sides,' said a senior official with the CDB.
CDB, founded in 1994, serves as a policy bank under the direct jurisdiction of the State Council and has 32 branches and four representative offices across the country.
Barclays is the largest issuer of credit cards in Europe and the third-largest banking group in Britain with around 27 million customers and clients in more than 50 countries and regions.
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