IT APPEARS that both Barclays and Old Mutual are between a rock and a hard place, but Old Mutual is, I suggest, in a better position.
The resolution for Old Mutual is to sell off or float off its US and UK businesses, perhaps maintaining a minority interest, and move its headquarters back to SA. The 54% stake in Nedbank can remain undisturbed.
In effect, Old Mutual will be back where it was before the egotistical move to London, and hopefully with a bit of cash to invest in expanding its South African and Southern African businesses.
Barclays has the much greater problem of selling off a majority stake in a bank in a country that is seen internationally as increasingly unattractive in which to do business.
Robert Stone
Linden
Old Mutual. Picture: BLOOMBERG/SIMON DAWSON
IT APPEARS that both Barclays and Old Mutual are between a rock and a hard place, but Old Mutual is, I suggest, in a better position.
The resolution for Old Mutual is to sell off or float off its US and UK businesses, perhaps maintaining a minority interest, and move its headquarters back to SA. The 54% stake in Nedbank can remain undisturbed.
In effect, Old Mutual will be back where it was before the egotistical move to London, and hopefully with a bit of cash to invest in expanding its South African and Southern African businesses.
Barclays has the much greater problem of selling off a majority stake in a bank in a country that is seen internationally as increasingly unattractive in which to do business.
Robert Stone
Linden
