Barclays to Sell Stake in FirstCaribbean for $1.08 Billion

Barclays, the third-biggest British bank, said Monday that it has signed a letter of intent to sell its 43.7-percent stake in FirstCaribbean International Bank for about $1.08 billion to Canadian Imperial Bank of Commerce (CIBC).

CIBC owns already 43.7 percent of FirstCaribbean, which was formed in 2002 through the merger of the Caribbean businesses belonging to Barclays and CIBC. The remaining 12.6 percent of FirstCaribbean is publicly held.

Barclays said it expected to complete the sale in late 2006 following regulatory approval. It added in a statement that CIBC would have the option of paying for the transaction through cash, CIBC common shares or a combination of cash and shares.

Barclays said it would not be a long-term holder of any CIBC shares it acquired through the deal. Barclays finance director Naguib Kheraj meanwhile said that FirstCaribbean had performed well since its inception.