BARC Barclays Plc

RNS No 4281a
BARCLAYS PLC
2nd February 1998


                         BARCLAYS PLC
                STRATEGIC REORGANISATION OF BZW
                       FINANCIAL EFFECT

In October 1997 Barclays announced its decision to reorganise
its investment banking business and withdraw from equities,
equity capital markets and the mergers and acquisition
advisory business, together with all of its investment banking
business in Australasia.

Barclays today announces that the subsequent sale of certain
parts of BZW and associated restructuring will result in a
loss of #340 million to the Group.  This loss will be
accounted for in Barclays 1997 full year results.

The #340 million loss includes the #57 million discount on the
sale of net assets arising from the disposal of the UK,
continental European and Asian businesses.  The other major
items included relate to staff, property, infrastructure and
IT costs.  It is expected that tax relief at approximately 24%
will be obtained on the #340 million loss.  There will be an
additional charge of #129 million to the profit and loss
account in 1997 in respect of goodwill.  This was written off
directly to reserves in previous years following the
acquisition of certain of the BZW businesses and therefore it
has no effect on the Group's capital base.

The effects of the sale of the Australasian investment banking
business will be accounted for in 1998 but will not be
significant.  There may be certain other costs during 1998
associated with the sale or reorganisation of parts of BZW but
they are not expected to be material.

Trading performance

The trading performance of those parts of BZW offered for sale
was  affected by uncertainty surrounding their future and
difficult market conditions.  These businesses will report an
operating loss of #219 million for the year ended 31 December
1997 (1996: operating loss of #11 million).  The bulk of the
1997 loss arose in the last quarter.


Barclays Capital, the continuing investment banking business
of the Group, performed
well during the year and will report an operating profit of
#248 million in 1997
(1996: #201 million).

Strategic decision

In October 1997, following a strategic review of the
businesses and in the light of the rapidly changing market
environment, Barclays announced the reorganisation of BZW, its
investment banking business.  The Group refocused its
investment banking business to concentrate on activities in
which it believes it has competitive advantage and which are
integral to its broader business strategy.  As a result, BZW's
markets division, debt-related structuring, lending and
private equity businesses were brought together as Barclays
Capital.  Barclays sought a purchaser for the equities, equity
capital markets and mergers and acquisitions advisory
businesses, together with all of the investment banking
business in Australasia.

Martin Taylor, chief executive of Barclays, said: "We made a
strategic decision to redefine our investment banking business
in the autumn, because continuing to invest in parts of the
business no longer made commercial sense for us; this decision
has been reinforced by subsequent market developments.

"Although the process of withdrawal has not been easy, it has
been achieved without letting our clients down, and in
Barclays Capital we have a new business with great strength
and potential.  We expect this concentration of resources and
management effort on sound and relevant businesses to be very
positive for shareholders."

Sale process

Following the October 1997 announcement, the Group
subsequently announced that it had reached agreement to sell:

i)the UK and continental European equities, equity capital
  markets and mergers and acquisition advisory businesses to
  Credit Suisse First Boston (CSFB).  The sale of these
  businesses is being completed in a number of stages;
  completion has already occurred in relation to the equity
  capital markets and mergers and acquisitions advisory
  businesses and part of the continental European equities
  business.  The aggregate net assets of these businesses,
  including the parts which have already been completed, are
  expected to total #150m, for which Barclays will receive
  #100m;

ii)the Australian and New Zealand investment banking
   business to ABN Amro for
   AU$177 million (#71 million), representing a premium to net
   assets of AU$36 million
   (#14 million); and,

iii)parts of the Asian equities, equity capital markets
    and mergers and acquisition advisory businesses to CSFB.
    The businesses being sold had net assets of #14 million as
    at 30 November 1997.

The decision was also taken to retain and restructure the
equity derivatives business and this has been integrated
within Barclays Capital with effect from 1 January 1998.


In  addition, as a direct consequence of its decision to
reorganise BZW, Barclays is closing down certain of BZW's
Asian equities businesses.

The Barclays Group will report its 1997 results in full on 17
February 1998.



For further information please contact:

Elizabeth Wade                         Susan Cottam
Investor Relations                     Group Public Relations
Barclays PLC                           Barclays PLC
Tel: 0171 699 2874                     Tel: 0171 699 2658

Ian Roundell
Investor Relations
Barclays PLC
Tel: 0171 699 2961


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