Exclusive: Barclays eyes smaller units for growth in strategic review, risks investor ire

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Barclays is betting it can revive its wilting share price by upping investment in a crop of its smaller businesses including U.S. credit cards, sources familiar with the matter said. But some of its top shareholders would prefer the quicker fix of a buyback.

The Barclays headquarters building is seen in the Canary Wharf business district of east London February 6, 2013. REUTERS/Neil Hall /File PhotoSome shareholders, analysts would prefer stock buybacksLONDON, July 12 - Barclays

Chief Executive C.S. Venkatakrishnan is studying plans to allocate more capital to the bank's wealth management, U.S. credit card and global payments activities to boost returns, according to people familiar with his thinking and reported here for the first time, after drafting in Boston Consulting Group to review strategy earlier this year.

The BCG review could lead to layoffs, the source familiar with the review said, although no decisions have been made. They question the logic of pumping more capital into divisions that are small relative to their competitors as the global economy shivers and the lender's shares suffer.

 

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