Barclays may launch cash call on anniversary of U.S. Lehman deal

By Steve Slater

LONDON, Sept 2 (Reuters) - Barclays Plc is set tolaunch its 5.8 billion pound ($9 billion) rights issue in twoweeks, possibly on the fifth anniversary of its takeover of theU.S. operations of Lehman Brothers, people familiar with thematter said on Monday.

The one-in-four offer, priced at 185 pence a share, isexpected in the third week of September, they said. Barclays didthe Lehman deal on Sept. 16, 2008, a day after the U.S.investment bank collapsed.

The British bank declined to comment, but has previouslysaid it expects its new shares to start trading on Oct. 3.

Barclays unveiled basic details alongside half-year resultson July 30 after Britain's financial regulator said it needed anextra 12.8 billion pounds to cushion it against potential marketshocks, based on a new measure of its leverage.

The bank's share price has held relatively steady since thatdate - dropping 7 percent. The shares were up 1.5 percent at287.7p by 1430 GMT alongside a strong European bank index, valuing the bank at 37 billion pounds.

The rights issue, the biggest by a British bank since 2009,could run into competition from the sale of Britain's shares inLloyds Banking Group. The government could sell 4-6billion pounds of its Lloyds stake in the next few weeks beforenational political party conferences in late September, industrysources have said.

Investors said that there should be appetite to buy sharesin both stocks despite regulatory pressures squeezing banks'profitability and forcing them to restructure.

Barclays' plan to bolster capital also includes retainingearnings, selling 2 billion pounds of bonds and shrinking loans,notably in its investment bank.

Its purchase of the U.S. Lehman business five years ago hasbeen regarded as a success, giving it a strong position tochallenge Wall Street's dominant firms, but increasing itsreliance on investment banking, which Chief Executive AntonyJenkins is now scaling back.

Barclays is global co-ordinator for the offer. The othermain advisers and underwriters are Credit Suisse, Deutsche Bank,Bank of America Merrill Lynch and Citi.