Barclays is in negotiations to purchase the £3 billion mortgage book of Metro Bank

According to a report on Sky News on Monday, Barclays is in exclusive talks to acquire the residential mortgage portfolio worth £3 billion held by struggling lender Metro Bank.

By year's end, a deal is probably going to be reached, the report continued.

The report is released following the announcement in early October of a 325 million pound capital raise and a 600 million pound debt refinancing by Britain's most well-known challenger bank, with the aim of strengthening its finances.

Following a series of financial setbacks in recent years, including accounting errors, leadership changes, and delayed regulatory approval for critical capital relief, Metro Bank attempted to strengthen its position.

The company's rescue plan, which would give its largest investor, Colombian billionaire Jaime Gilinski, majority shareholder control, is up for vote among shareholders on Monday. Bondholders, some of whom will take a 40% haircut, have approved the plan.

Metro's stock rose by 9.3% on the news, now still trading at just under 6%.

(Sources: investing.com, skynews.co.uk)