International banking group Barclays bought up a total of 1,158-million shares in Absa in the open market on Wednesday at prices ranging from R81,65 to R81,81 per share, adding to the 554 400 shares it purchased on Tuesday, the company revealed on Thursday.
Barclays is building up its Absa shareholding in the face of reluctance from some existing Absa shareholders to sell their Absa stakes to Barclays as part of its bid to gain a 60% controlling interest in Absa. Its offer price is R82,50 per share, and under the current offer it has so far received tenders and commitments to tender representing 51,1% of all Absa shares.
Shareholders are hoping to hang on to some shares in order to participate in any potential upside in the Absa share price resulting from the merger.
On Tuesday Barclays extended its offer period by two weeks, to July 5. At the same time, on Tuesday the group bought up 554 400 Absa shares at prices ranging from R81,67 to R81,80. – I-Net Bridge