This is speculation in the New York Times, but this would be huge, and create enormous scale. Barclays have the worldwide coverage in 60 countries, and BofA have a large footprint in the US. Barclays just purchased a 40,000 employee Bank in South Africa for example.
Bank of America is likely to bid for Barclays, the No. 3 bank in the United Kingdom, to further its international expansion strategy, a Merrill Lynch analyst said in a research report Friday. The analyst called Barclays the perfect fit for Bank of America, and suggested that the United States-based bank could pay a premium of 25 percent to 30 percent above Barclays- current stock price.
Shares of Barclays, which gained 3 percent Thursday amid speculation it was a takeover target, continued to rise on Friday, valuing the British lender at more than 46 billion pounds ($90.6 billion), Reuters reported.
| US $ | Market Cap |
| Barclays | 90 Bn |
| BofA | 230 Bn |
Note: numbers are approximate:
In terms of assets under administration, Barclays are bigger, and their global reach, would combined produce a world class Bank.
Bankwatch 
I wondered when this topic would surface again!
Back in June of 2005, there was intense speculation here in the UK about a possible bid for Barclays by BoA.
BoA was distracted by it’s takeover of MBNA Bank, a large supplier of credit card and related finance in the UK. This seems to have gone well – I’ve not heard anything negative about it in the Uk press. So they might be ready to go for Barclays again.
Certainly, the UK market may hold some interest for BoA, but I feel it may be the Spanish and South African connections that may be the reason, or the success of Bob Diamond’s Barclays Capital divisions, that already operate in New York and California.
I have small shares in Barclays so hopefully I’ll be in for a small windfall 😉
What this all means for UK Banking however is anyone’s guess.
Being a customer of Barclays, a happy one, I hope, if the takeover goes ahead, I won’t be subjected to the heavy marketing and promotions associated with American Banking.