Barclays poised to launch £5.8bn offer within weeks

The launch of Barclays’ heavily-discounted £5.8 billion rights issue could come in two weeks’ time, possibly on the fifth anniversary of its takeover of the US operations of Lehman Brothers.

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The offer is expected in the third week of September, sources said yesterday. Barclays agreed the Lehman deal on 16 September 2008, the day after the US investment bank collapsed. Investors will be offered one new share for each four they currently hold at an issue price of 185p,

Barclays declined to comment, but has previously said it expects its new shares to start trading on 3 October.

The bank revealed its plans alongside half-year results in July, after the City regulator said it needed an extra £12.8bn to cushion it against potential market shocks.

The rights issue, the biggest by a British bank since 2009, could run into competition from the sale of the UK government’s shares in Lloyds Banking Group. Industry sources have said the state could sell between £4bn and £6bn of its Lloyds stake before the political party conferences later this month.

Investors said that there should be appetite to buy shares in both banks, despite regulatory pressures squeezing lenders’ profitability.

Barclays’ plan to boost its capital also includes retaining earnings, selling £2bn of bonds and shrinking loans, notably in its investment bank.

Its purchase of the US Lehman business five years ago has been regarded as a success, giving it a strong position to challenge Wall Street’s dominant firms, but increasing its reliance on investment banking, which chief executive Antony Jenkins is now scaling back.

Barclays is global co-ordinator for the rights issue. The other main advisers and underwriters are Bank of America Merrill Lynch, Citi, Credit Suisse and Deutsche Bank.