UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
January, 2007
Barclays PLC and
Barclays Bank PLC
(Names of Registrants)
1 Churchill Place
London E14 5HP
England
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No x
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):
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This Report is a joint Report on Form 6-K filed by Barclays PLC and Barclays
Bank PLC. All of the issued ordinary share capital of Barclays Bank PLC is
owned by Barclays PLC.
This Report comprises:
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.
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EXHIBIT INDEX
Acquisition dated 19 January, 2007
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19th January 2007
BARCLAYS PLC
Barclays to acquire EquiFirst from Regions Financial Corporation
Barclays Bank PLC ("Barclays") announces that it has entered into an agreement
to purchase EquiFirst Corporation, the non-prime mortgage origination business
of Regions Financial Corporation ("Regions"), for a consideration of
approximately US$225 million (GBP115 million). Completion is expected in the
first half of 2007, subject to the receipt of the required licences and
applicable regulatory approval. In the third year of ownership, Barclays expects
to achieve an annual post-tax return on this investment in excess of 20%.
Barclays will finance the transaction out of existing cash resources.
EquiFirst is the 12th largest non-prime wholesale mortgage originator in the
United States. It originates its loans through over 9,000 brokers in 47 states.
It will be combined with Barclays mortgage servicing and capital markets
capabilities to create a vertically integrated mortgage franchise. Barclays
believes that a vertically integrated mortgage franchise can deliver significant
synergies through linking our established capital markets business with
servicing and origination capabilities.
Barclays Capital currently has an active wholesale loan mortgage business in the
US which involves the purchase and securitisation of mortgages on a principal
basis. All the loans originated by EquiFirst are expected to be securitised or
sold on an ongoing basis after an average hold period of approximately 2 to 3
months. This acquisition builds on the recent purchase of HomEq, a mortgage
servicing platform, acquired by Barclays in November 2006.
Grant Kvalheim, Co-President of Barclays Capital, commented, "I am delighted to
acquire such a strong management team within EquiFirst and we welcome the
EquiFirst staff to Barclays Capital. This acquisition offers Barclays Capital an
excellent opportunity to further vertically integrate and expand our existing US
mortgage business."
Dowd Ritter, President and CEO of Regions Financial (NYSE:RF), said, "This sale
is the result of a tighter focus on our strategic priorities. Regions is
concentrating on customer relationships and core businesses in our 16-state
footprint. We operate in very attractive markets in the South, Midwest and Texas
and believe they represent the greatest potential for success."
Jeff Tennyson, CEO of EquiFirst, said, "Regions' ownership of EquiFirst over the
last 8 years has allowed us to build a premier mortgage lender in the non-prime
industry. Barclays Capital is a leading international investment bank that will
strengthen our position as an industry leader and greatly enhance our access to
the global capital markets. The sale of EquiFirst to Barclays Capital is a clear
positive event for all stakeholders."
- ENDS -
For further information please contact:
Barclays
Investor Relations Media Relations
Mark Merson/James S Johnson Alistair Smith/Laura Vergani
+44 (0) 20 7116 5752/2927 +44 (0) 20 7116 6132/8335
Contact at Barclays Capital in New York:
Peter Truell
+1 (212) 412-7576
Regions Financial Corporation
Investor Relations Media Relations
List Underwood Rick Swagler
+1 (205) 801-0265 +1 (205) 801-0105
About Barclays
Barclays Bank PLC is a major global financial services provider engaged in
retail and commercial banking, credit cards, investment banking, wealth
management and investment management services. We are one of the largest
financial services companies in the world by market capitalisation. With over
300 years of history and expertise in banking, Barclays operates in over 60
countries and employs around 120,000 people, we move, lend, invest and protect
money for over 25 million customers and clients worldwide. For further
information about Barclays PLC please visit our website www.barclays.com.
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC which
has an AA long-term credit rating and a balance sheet of over GBP986 billion
(US$1.8 trillion*). With a distinctive business model, Barclays Capital provides
large corporate, government and institutional clients with solutions to their
financing and risk management needs. Barclays Capital has offices in 26
countries, employs over 10,500 people and has the global reach and distribution
power to meet the needs of issuers and investors worldwide. Barclays Capital
completed the acquisition of HomEq, the US mortgage servicing business, in the
second-half of 2006, which added 1,300 employees. For further information about
Barclays Capital, please visit our website www.barclayscapital.com.*US$ figure
was derived using the US$/GBP exchange rate at 30.06.06 of US$1.85/GBP1.
About Regions Financial Corporation
Regions Financial Corporation is a member of the S&P 100 Index and Forbes
Magazine's "Platinum 400" list of America's best big companies. With more than
US$140 billion in assets, Regions is one of the nation's largest full-service
providers of consumer and commercial banking, trust, securities brokerage,
mortgage and insurance products and services. Regions serves customers in 16
states across the South, Midwest and Texas, and through its subsidiary, Regions
Bank, operates some 2,000 AmSouth and Regions banking offices and more than
2,400 ATMs. Its investment and securities brokerage, trust and asset management
division, Morgan Keegan & Company Inc., provides services from over 300 offices.
Additional information about Regions and its full line of products and services
can be found at www.regions.com.
Forward-looking statements
This document contains certain forward-looking statements within the meaning of
Section 21E of the US Securities Exchange Act of 1934, as amended, and Section
27A of the US Securities Act of 1933, as amended, with respect to certain of
Barclays plans and its current goals and expectations relating to its future
financial condition and performance, in particular with respect to Barclays
Capital. These forward-looking statements can be identified by the fact that
they do not relate only to historical or current facts. Forward-looking
statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe', or other words of similar
meaning. Examples of forward-looking statements include, among others,
statements regarding Barclays future financial position, income growth,
impairment charges, business strategy, projected levels of growth in the banking
and financial markets, projected costs, estimates of capital expenditures, and
plans and objectives for future operations.
By their nature, forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances, including, but not limited to,
global as well as US economic and business conditions, market related risks such
as changes in interest rates and exchange rates, the policies and actions of
governmental and regulatory authorities, changes in legislation, and the impact
of competition - a number of which factors are beyond Barclays control. As a
result, Barclays actual future results may differ materially from the plans,
goals, and expectations set forth in Barclays forward-looking statements. Any
forward-looking statements made by or on behalf of Barclays speak only as of the
date they are made. Barclays does not undertake to update forward-looking
statements to reflect any changes in Barclays expectations with regard thereto
or any changes in events, conditions or circumstances on which any such
statement is based. The reader should, however, consult any additional
disclosures that Barclays has made or may make in documents it has filed or may
file with the SEC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each of
the registrants has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BARCLAYS PLC
(Registrant)
Date: January 19, 2007 By: /s/ Patrick Gonsalves
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Patrick Gonsalves
Deputy Secretary
BARCLAYS BANK PLC
(Registrant)
Date: January 19, 2007 By: /s/ Patrick Gonsalves
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Patrick Gonsalves
Joint Secretary