Barclays Cheaper Than Peers Fuels Breakup Talk: Real M&A [1]

Bloomberg

By Aaron Kirchfeld - Aug 14, 2012 9:21 AM ET

Barclays Plc (BARC) [2], the U.K. bank fined a record amount for rigging global interest rates, is languishing at a cheaper valuation than 93 percent of its global competitors, fueling a debate about breaking up Britain’s second-biggest lender.

The shares trade at a 59 percent discount [3] to book value, implying investors don’t agree that the bank’s holdings are worth as much as the London-based company says. That’s a lower price-to-book ratio than 141 financial firms listed in the 152-company Bloomberg World Banks Index, according to data compiled by Bloomberg. While Liberum Capital Ltd. says one hurdle to a breakup may be the investment bank’s ability to fund itself, Canaccord Financial Inc. says splitting up Barclays may almost double its market value of 22 billion pounds ($35 billion).

To read the rest of this story, visit Bloomberg.com. [4]
Similar Story: Barclays' value plummets £4bn as shareholders flee. [5]