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Barclays Bid Gets Backing From the East
China, Singapore put up cash for ABN Amro takeover offer
By Heather McPherson
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Posted Jul 23, 07 12:06 PM CDT
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(Newser)
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The Chinese and Singaporean governments have invested almost $5 billion in Barclays, helping the firm float more cash for its bid for ABN. The state-run companies would invest even more if the bid succeeds, which would leave the Chinese state with a holding of 7.7% of the world's new largest bank.
The investments have been made by the China Development Bank (CDB) and Temasek, the investing branch of Singapore's government, and arranged by the US firm Blackstone. After the dust settles, some may wonder if "the balance of economic power may be shifting eastward in a way that should concern us," says a BBC commentator.