After the consortium of three European banks led by Royal Bank of Scotland, raised its cash proportion of its bid to buy out ABN Amro, Barclay�s seems to answer this increase through a revised bid.

Barclays, the competing bidder, has increased its offer by �2.9 billion ($4 billion) to �67.5 billion ($93.3 billion). The new offer is divided into �42.7 billion in shares and �24.8 billion as cash. Barclay�s would raise part of fund by selling part of its stake in itself worth �13.4 billion ($18.52 billion), to China Development Bank and Singapore�s state-owned Temasek Holdings. Out of this, �3.6 billion investment is not unconditional to the outcome of the merger, while the remaining �9.8 billion investment is conditional to the merger being fulfilled.

Although, Barclay�s bidding price is yet lower than the �71.1 billion ($98.2 billion) mostly cash bid from a consortium of three European banks led by Royal Bank of Scotland.

If Barclay�s is to overtake ABN Amro, the Chinese state would be a 7% stakeholder in the new entity, while Singapore having 3%. But if it fails, both governments would have to opt for smaller stakes in Barclays. ABN Amro recently opened its first branch in China.