Barclays raises ABN AMRO offer to $93 bn

London, July 23: Britain's Barclays has raised its offer for ABN AMRO to 67.5 billion euros ( billion) and included 37 per cent in cash as it seeks to regain the initiative in the world's biggest bank takeover battle.

Barclays said on Monday its new bid was 42.7 billion euros in shares and 24.8 billion euros in cash, up from its previous all-stock offer of around 65 billion euros.

The raised offer will be helped by a 3.6 billion euros investment in Barclays from China Development Bank and Singapore's Temasek, which may invest a further 9.8 billion euros if the takeover of ABN goes ahead.

Under the deal, China Development Bank will take a 3.1 per cent stake in Barclays, potentially rising to around 8 per cent of an enlarged Barclays. Temasek will take a 2.1 per cent stake in Barclays, potentially rising to just over 3 per cent.

The offer is still below a 71 billion euro bid from a group of European banks led by Royal Bank of Scotland.

Barclays also said its earnings in the six months to the end of June rose 14 per cent from a year ago to 4.1 billion pounds.

Reuters>