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Morning Meeting: Barclays' bonds for bankers

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A look at some must-read news on deals and deal makers around the world

Barclays to pay bankers in bonds

Barclays PLC has found a way around one of the problems facing banks looking to issue an innovative new form of capital that the market may not like: issue it to employees. The bank is set to start paying senior bankers with bonds that are a form of contingent capital, the Financial Times reports. The bonds convert to equity in a time of need for the issuing bank, giving it extra capital and reducing debt.

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Canadian regulators have been behind the idea of contingent capital, pushing it as an alternative to a bank tax, but the issue has always been market demand. One of the good things about owning a bond is that it gets you in line for a recovery in a bankruptcy. Who wants a bond that gives up that feature by converting to equity, which is last in line for recovery, in times of financial stress for the issuer? (See a previous Globe item on that here. As the Financial Times points out, Barclays employees won't have any choice.

Sara Lee gets tasty offer

Sara Lee Corp. has received an above-market offer for the food company, according to numerous reports, including this one from Bloomberg News. Apollo Group, a private equity firm, led the offering consortium, which is willing to ante up close to the $20 a share that Sara Lee's board is seeking, the report said. Sara Lee makes food items ranging from frankfurters to coffee.

Oxford looks at loan-to-own

Canada's Oxford Properties is looking aT putting $4-billion to work in real estate, using everything from outright purchases to loan to own strategies -- where it will buy debt of a building in hopes of taking over when the debt goes into default.

Groupon not committed to an IPO

Coupon site Groupon isn't set on an initial public offering, and is talking to banks more as a learning exercise than as a beauty contest to choose an underwriter, according to a Bloomberg News interview with the company's head.

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