Barclays is among Britain's best known and oldest banks

A tie-up between Barclays and California-based Wells Fargo would create the world's fourth biggest bank, valued at $180bn (�96bn).

Barclays has declined to comment on the report in the Sunday Express, saying it does not respond to market speculation.

The two banks reportedly held talks in October and November 2004.

Setting the pace

Barclays shares closed up 6.5p, or 1.09%, at 603.5p in London on Monday.

UK banking icon Barclays was founded more than 300 years ago; it has operations in over 60 countries and employs 76,200 staff worldwide.

Its North American divisions focus on business banking, whereas Wells Fargo operates retail and business banking services from 6,000 branches.

In 2003, Barclays reported a 20% rise in pre-tax profits to �3.8bn, and it has recently forecast similar gains in 2004, predicting that full year pre-tax profits would rise 18% to �4.5bn.

Wells Fargo had net income of $6.2bn in its last financial year, a 9% increase on the previous year, and revenues of $28.4bn.

Barclays was the focus of takeover speculation in August, when it was linked to Citigroup, though no bid has ever materialised.

Stock market traders were sceptical that the latest reports heralded a deal.

"The chief executive would be abandoning his duty if he didn't talk to rivals, but a deal doesn't seem likely," Reuters quoted one trader as saying.