Barclays Vulnerable to Takeover After CEO's Sudden Departure

The sudden resignation of Martin O'Neill, the newly-appointed chief executive of Barclays Bank, has sparked speculation about a potential takeover of the company. Analysts have long been watching the bank's share prices, which plummeted significantly after it lost $250 million in Russian bonds. Despite denials from Barclays and Royal Bank of Scotland, rumors of a takeover have resurfaced, with some analysts believing that the company is too expensive to be a good purchase due to its rising share prices.

Key Takeaways:

• Barclays shares firmed after O'Neill's resignation, with investors speculating that heavyweight rivals like Lloyds TSB and Halifax might make a move.
• Analysts believe that the company is too expensive to be purchased, citing its rising share prices.
• Mark Thomas, analyst at Credit Lyonnais, said that the critical issue is the extent to which Barclays feels that it is negotiating from a position of weakness.
• Mark Durling, analyst with stockbrokers Bell Laurie White, said that Barclays would have been a better purchase last year, but now it's not one of the most likely companies to be taken over.
• Barclays should have an easier job finding a replacement for O'Neill, although it is understood that neither Peter Burt of Bank of Scotland nor Sir George Mathewson at Royal Bank of Scotland were interested in the position.

Statistics:

• Barclays lost $250 million in Russian bonds, causing a significant drop in its share prices.
• The company's share prices have risen, making it less likely to be purchased by potential buyers.
• Barclays has a new CEO opening, which should be filled more easily than last year's search for a replacement.

Sources:

• Barclays Bank
• Credit Lyonnais
• Bell Laurie White
• The Times ( no date provided)
• No specific source mentioned for the financial loss magnitude