Shares in Barclays climbed over 2 per cent and its Dutch target ABN AMRO also rose today as the British bank was moving quicker to agreeing an $80 billion takeover than many had expected, dealers said.
The two banks outlined a framework proposal after yesterday's close that would see a combined company listed in London, head-quartered in Amsterdam and have its two top jobs split.
Earlier Barclays shares were up 2.4 per cent at 719 pence, the top UK blue-chip stock, valuing it at £45 billion.
ABN's shares were up 0.6 per cent at €31.2, valuing it at over €59 billion. Dealers said Barclays may be offering more concessions to ABN than expected to smooth the path to a deal and so reduce the need for it to pay a lofty premium.
Barclays is in exclusive talks on buying ABN in what would represent Europe's biggest ever financial services deal. The UK bank is likely to pay about €33 per ABN share, mostly in shares but possibly including a cash sweetener, analysts said.
Barclays may sell ABN's US retail bank LaSalle if it succeeds, which could raise $23 billion and allow it to return £10 billion pounds to shareholders, The Times newspaper said, without citing sources.