Barclays is still under fire from investors who believe Middle East investors it turned to (instead of the British government) for a capital injection drove too hard a bargain. It’s management and board moved to prevent a shareholder revolt by foregoing executive bonuses for this year and offering to put the entire board up for a shareholder vote in April. That’s pretty damn cool and very British parliament of them.
Barclays is also offering investors a chance to buy into the reserve capital instruments that the earmarked Qatar and Abu Dhabi investors are buying. The current shareholders will be offered up to $500 million of the $8.7 billion.
Here’s some local colour from the Financial Times:
Vince Cable, Liberal Democrat Treasury spokesman, had said the original capital raising plan deal was “a scandal of mammoth proportions”.
Under the deal, Qatar Holding and Challenger, a company representing Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, chairman of Qatar Holding, will invest £2.3bn in the instruments, doubling their existing shareholding to 15.5 per cent.
Meanwhile, Sheikh Mansour Bin Zayed Al Nahyan, a member of Abu Dhabi’s ruling family, is investing about £3.5bn, which will leave him with more than 16 per cent of Barclays once the shares have been converted.
But institutional investors had been angered by their exclusion from buying the capital reserve instruments. A number – including Legal & General Investment Management with about 5 per cent of Barclays’ shares, and Aviva Investors, with 1 per cent – had threatened to vote against the deal at a general meeting on November 24.
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