Barclays 2011 Annual Report Download - page 29

Divisional review
Case studies
Delivering Barclays
Capital for HP
When Hewlett-Packard
announced its $11.7bn US-UK
cross-border acquisition of
Autonomy, Barclays Capital
played a crucial role in every
aspect of the transaction.
Underscoring the firm’s ability to coordinate globally across regions
and product areas to deliver seamless solutions for clients, teams
spanning Technology client coverage, M&A, Corporate Broking, Debt
Capital Markets, Loan Capital Markets, Global Finance Structuring &
Advisory, Risk Solutions and Syndicate partnered to support HP on the
transaction – the largest cross-border software M&A deal in history.
In addition to providing strategic M&A advice on the transaction as
well as delivering a fairness opinion to the HP board of directors,
Barclays Capital acted as sole arranger and sole underwriter for a
fully-committed $8.3bn (£5bn) bridge facility to support the
transaction, which was successfully syndicated to a select group of
core relationship banks upon announcement. Barclays Capital also led,
and was billing and delivery agent for $4.6bn of senior notes.
The ability to provide a commitment of this size on a sole-basis was
widely hailed in the media as a validation of Barclays Capital’s full-
service offering. The New York Times wrote: “Unlike boutiques, the
full-service banks can provide a fuller picture of how the capital markets
may react to a potential deal as well as the necessary financing for a
transaction. Barclays Capital, for instance, committed to providing £5bn
to HP for its Autonomy deal, which a boutique advisor could not do.”
Barclays Retail and
Business Banking –
Pingit
Europe’s first person-to-person
service for sending and receiving
money using mobile phone
numbers is launched in 2012.
Barclays has a track record of leading the transformation of banking
and financial services through the use of technology. In addition to
investing in improving our current services, we are also seeking to
meet needs which customers have not yet identified themselves.
Recognising the strength of consumers’ attachment to their
smartphones and the opportunity that smartphone apps present
for rapid and cost-effective innovation, we launched Barclays Pingit
simultaneously for Apple, Android and Blackberry users. On the
day of Pingit’s launch, it was the second most popular app
downloaded from Apple in the UK.
Barclays Pingit allows users to receive and send money, for free, to
anyone with a UK current account and a UK mobile phone number,
simply by using that mobile number. It removes the need to share
bank details. Further releases of the app will add new features and
extend its use internationally and to other customer groups allowing
Barclays to maintain the innovation lead created by its launch.
Barclays Wealth
Offering clients the benefits from
our international reach and
expertise in private wealth
management, investment
management, financial planning,
brokerage and private banking.
Since the establishment of our private banking business in India three
years ago, Barclays Wealth has grown significantly.
In India, private banking clients are typically entrepreneurs who have
established multi-generational family businesses with complex
financing needs. This provided us with a unique opportunity to serve
our clients more comprehensively through our “private investment
banking” model, unique investment philosophy and our wealth
advisory expertise.
Client assets have reached the £1bn mark since inception. We have
built a solid reputation and a strong franchise this was clearly
demonstrated by winning the ‘Best Private Bank in India’ in The Asset
Triple A Investment Awards.
Barclays Corporate
backing Wyke Farms
Wyke Farms is a 125 year old
independent family owned
business and one of the leading
manufacturers and suppliers of
branded cheddar cheese, butter
and whey protein in the UK.
Towards the end of 2009, the business started experiencing significant
trading challenges in volatile market conditions and as a result saw
losses start to build monthly. Since that time the Barclays Business
Support team has worked closely with Wyke Farms’ management to
develop and implement a structured ‘Fit for the Future’ turnaround
plan. The results have been outstanding – in 2011 Wyke Farms
returned to profitability and is now on a sustainable financial footing,
generating good returns for its shareholders, providing stability of
employment locally and maintaining its position as the largest
premium branded family owned cheddar producer in Britain. Indeed
the highly effective working relationship between Barclays and Wyke
Farms which resulted in this success was formally recognised by the
Institute for Turnaround in December 2011 when Wyke Farms won
the IFT ‘Private Company Turnaround of the Year’ award.
The relationship between Wyke Farms and Barclays has been
strengthened even further through this experience. Barclays continues
to provide tailored borrowing facilities to the business to enable
investment in new staff and machinery and our relationship
management team is there to give additional advice and support
as the company enters its next phase of growth.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 27
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