Barclays' share price soars; speculations of Citigroup bid

08/06/04 - newratings.com

LONDON, August 6 (New Ratings) – Barclays Plc (BARC) witnessed a sharp share price rally today, driven by speculations regarding a possible bid of upto £45 billion ($82 billion) from the US-based banking giant, Citigroup.

Media reports today indicated a potential 700p per share offer from Citigroup (C) for Barclays, the third largest British banking company in terms of assets, citing talks among some unidentified dealers. The speculated price represents one of the largest takeover deals ever. The two banking companies have reportedly declined to comment on the merger talks. Barclay's deputy Chief Executive Officer, John Varley, who is likely to become the CEO next month, downplayed the speculations of a potential merger or acquisition transaction by the company in the near future.