On deals and all things sweet

I have just been watching Bob Diamond, Barclays Bank President, justify the merits of the Barclays decision to invite the China Development Bank of China and Temasek of Singapore to become significant shareholders in Barclays group and for them to revise their bid for ABN AMRO Bank.

As I understand it the deal was orchestrated by Blackstone Private Equity group, who already have the Chinese government as shareholders. The move by Barclays is to strengthen its bid and counter that put forward by the consortium led by Royal Bank of Scotland. (The deal by Barclays is now valued at $93 Billion where as the offer by RBS is valued at $98 Billion)

Where as Bob Diamond have a really good strategic vision as to how they will go forward if the deal was to be authorized, for instance by bringing the Chinese into the deal, they are hoping that the Chinese will capitalize on Barclays significant network and market leading position in Africa.

The Barclays management team have really pulled all the stops on this one, but if they do not pull it off, I am afraid that there will be blood on the dance floor and very big heads will roll.
Don't forget that Barclays Bank was not so long ago the subject of a take over bid and if this deal falls through then I expect Barclays to become the subject of a takeover itself.

We shall wait and see.......

**I have typed this in a hurry and apologize for any grammatical errors. Will review it upon my return later today**