Barclays in talks to acquire mortgage portfolio from Metro Bank

Banking giant Barclays has entered exclusive talks to acquire a large portfolio of residential mortgages from high street lender Metro Bank as it seeks approval for a wider refinancing aimed at saving it from collapse.

According to Sky News, Metro Bank has entered into discussion with Barclays to sell its residential mortgage book in an effort to strengthen its capital position.

News of the negotiations comes just a matter of hours before Metro Bank was expected to reveal that shareholders had overwhelmingly backed a £925.0m refinancing plan, which has already received approval from bondholders. It will also see Colombian billionaire Jaime Gilinski Bacal become its majority shareholder.

Metro Bank is looking to raise roughly £150.0m of new equity and £175.0m of new debt, while it also aims to refinance £600.0m of existing borrowings.

As of 1430 GMT, Metro Bank shares were up 6.42% at 41.45p, while Barclays shares were down 0.40% at 141.08p.

Reporting by Iain Gilbert at Sharecast.com