Barclays might receive cash infusion

Barclays PLC might receive about $927 million from Sumitomo Mitsui Financial Group Inc. to bolster its depleted balance sheet.
JUN 20, 2008
Barclays PLC might receive about 100 billion yen ($927 million) from Sumitomo Mitsui Financial Group Inc. of Tokyo as part of a plan to add capital to its depleted balance sheet, a person with knowledge of the plan told Bloomberg. Sumitomo Mitsui, will make the investment through its Sumitomo Mitsui Banking Corp. unit, the person said, declining to be identified because the deal hasn't been completed. Representatives of Sumitomo Mitsui Banking of Tokyo and Barclays declined to comment in the report. London-based Barclays, which has been hit with 1.77 billion pounds ($3.35 billion) of write-downs, said earlier in the week it might sell stock to existing shareholders and try to raise capital overseas, Bloomberg reported. Sumitomo Mitsui's stake would amount to about 2.3% of the bank's share capital, based on Barclays's Thursday closing price of $25.57. Barclays also may get investments from current shareholders Temasek Holdings of Singapore and China Development Bank of Beijing, analysts at NCB Stockbrokers Ltd. of London told Bloomberg. Under the terms of the agreement, Barclays and Sumitomo Mitsui will work together on projects in Asia, said the person who declined to be identified. The companies may announce their deal by the end of June, the person said.

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