Barclays Tanks After Qatar Sells $2 Billion Stake

BarclaysCapital

Shares of Barclays are down nearly 5% this morning on news that Qatar sovereign wealth fund is selling a huge stake in the bank.

—–

DUBAI, United Arab Emirates (AP) — Qatar’s sovereign investment fund says it is selling a stake worth more than $2 billion in British bank Barclays.

Qatar Holding’s announcement on Tuesday to sell 379.2 million shares makes it the second major Gulf fund to cash in on its piece of the bank this year.

Abu Dhabi’s International Petroleum Investment Company made a $2.5 billion profit in June by selling part of the stake it picked up in the British bank just seven months earlier.

Qatar Holding, owned by the gas-rich state’s sovereign wealth fund, says it will exercise warrants for the shares it is selling. That will give Barclays 750 million pounds, or about $1.23 billion.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.