Barclays eyes ABN AMRO?

Barclays Plc has approached Dutch bank ABN AMRO with a merger plan that would create a global bank worth 80 billion pounds ($155 billion), UK newspapers reported on Sunday.The Sunday Times said Barclays approached ABN AMRO, the Netherlands' biggest bank, after British hedge fund TCI recently called for a merger or a breakup of ABN AMRO. Contact between the two banks is at an early stage and may not lead to a deal, the Sunday Times said, adding Barclays was "keen to act as a white knight to save ABN from its current problems."Spokespeople for both banks declined to comment. "We don't comment on market rumors," a Barclays spokesman said.The Sunday Times report, which did not cite sources, said the two banks held serious talks about a merger two years ago. The Sunday Telegraph said the two banks have held talks in the past month.Many industry analysts regard ABN as being up for sale or breakup.TCI, which was part of a group of activist investors that torpedoed Deutsche Bourses' takeover bid for the London Stock Exchange in 2005, in February said ABN was significantly undervalued and called on it to merge, sell or spin off some of its assets or potentially the whole business.Other investors have also put pressure on ABN's management for change and British hedge fund Toscafund last month called for it to be taken over after five poor years of performance.Barclays has made no secret of its plans to expand internationally and in 2006 half its profits came from overseas, up from a quarter in 2004.Industry analysts have said a combination of ABN and Barclays would make good strategic sense but could be hard to implement. Barclays could be most attracted by ABN's Dutch, Italian and U.S. retail operations and its Asia business.Its retail fund management business could also fit well with Barclays Global Investors, although fast-growing Barclays Capital may fit less well with ABN's investment bank business.

Ford losing 2 finance VPs

Ford Motor Co. is losing top-level executive talent in its finance ranks.

Ann Marie Petach, who has served as Ford's vice president of finance and treasurer since April 2005, submitted her resignation on Friday, according to a person familiar with the situation.

Petach, who joined Ford in 1984 as a financial analyst in the electronics division, has accepted a high-ranking position at Black Rock, Inc., in New York, a provider of global investment management, risk management and advisory services to institutional and retail clients around the world.

Also departing: James C. Gouin, who has served as vice president of finance, strategy and business development for international operations at Ford, since September. His future plans remain unclear.

Ford spokespeople said they could not confirm the moves Monday afternoon.

Petach played a crucial role in overseeing Ford's more than $25 billion financing package, which will carry the automaker through the 2009, when Ford aims to become profitable again in its troubled North American division.

She reported to Don Leclair, executive vice president and chief financial officer at Ford, and holds a bachelor's degree in business and Spanish from Muhlenburg College and a master of business administration from Carnegie-Mellon University.

Gouin holds a bachelor's degree in business administration from Detroit Institute of Technology and an MBA in finance from the University of Detroit.

BankMuscat signs agreement with International Finance Corporation Washington

BankMuscat SAOG, the nation’s leading bank, recently signed an agreement with International Finance Corporation, Washington (IFC- W) under its Global Trade Finance (GTF) Program. The agreement would enable BankMuscat’s customers to obtain confirmation / guarantees on Letters of Credit received by them for their exports to various emerging market countries such as Argentina, Armenia, Bangladesh, Bolivia, Brazil, Kenya, Lebanon, Malta, Mauritania, Nigeria, Mozambique, Russia, Pakistan, Uganda and others. This facility would support efforts to export to countries with riskier credit profiles, for which confirmation/guarantees are not available from traditional banking/export guarantee channels.

Speaking on the occasion, AbdulRazak Ali Issa, Chief Executive, BankMuscat said: “We are glad to join hands once again with the International Finance Corporation of another part of our business. BankMuscat has always striven to explore ways to provide greater value to our customer base across our spread of banking facilities. This agreement, we believe, will help lend momentum to our clients trade activities in several emerging market economies.”

IFC launched its US $500 million GTF program in 2005 with an aim to increase developing countries’ share of global trade and promote South-South flows of goods and services. The GTF program targets issuing banks in Africa, Asia, Latin America and Middle East and provides guarantees and pre-export cash advances to banks in over 70 countries. The GTF program achieved $200 million in guarantees issued in the first eight months of its operation.

Talking about the success of the GTF program, Bonnie L. Galat, Head – Sales & Marketing, Global Trade Finance Program, IFC said: "IFC is very pleased to have BankMuscat as a Confirming Bank in the Global Trade Finance Program. It is the first bank to join the Program from Oman and enhances our network of banks in the region. We look forward to supporting BankMuscat in its trade activity with emerging markets. The program should enhance BankMuscat's flexibility to service its export clients as they expand their businesses to new or challenging developing countries."

BankMuscat joins the list of nearly 100 banks across the world to join the program as a confirming bank. It becomes the first Omani bank to join IFC’s GTF program and amongst a select few banks across the GCC and MENA region.

During 2007, IFC’s GTF program is expected to target countries such as Angola, Rwanda, Senegal, Kazakhstan, Moldova, Belarus, Paraguay, Venezuela, El Salvador, Egypt, Jordan, Libya, Sri Lanka, Vietnam and Indonesia.

Islamic finance industry growing considerably

MENAFN - Kuwait News Agency (KUNA)) The Islamic finance industry has grown considerably in recent years, both locally and internationally, with an increase in the number of Islamic Sharia (law) compliant institutions, clients, and services offered, said Governor of the Central Bank of Kuwait Sheikh Salem Abdulaziz Al-Sabah on Sunday.

Speaking at the inauguration of the International Conference for Islamic Finance and Investment, he said Kuwait's Islamic finance activity dated to 1977 and now there were three Sharia-compliant banks and 31 investment companies.

These, he said, accounted for 26 percent of the local market, noting that the central bank had been working with these bodies since the early 1980s.

The whole world is becoming more interested in the Islamic finance industry, he said, citing as an example the UK where Islamic finance tools witnessed a noticeable growth and proved to be popular.

Many countries have begun preparing legislations allowing for the introduction of Sharia-compliant institutions, he said, noting this global expansion required the habilitation of human resources and workforce.

For his part, Secretary General of the Accounting and Auditing Organization for Islamic Financial Institutions Dr. Mohammad Al-Shaar said it was important to further develop international standards so as to guarantee the expansion of the Islamic finance industry.

The two-day conference will focus on developments in the Islamic finance industry and issues related to Islamic banking and finance institutions