Barclays' shareholders approve Mideast funds

Shareholders of Barclays PLC, Britain's second largest bank, voted overwhelmingly in favor of a plan to raise 7 billion pounds ($10.5 billion), largely from funds in the Middle East.

Barclays said over 87 percent of shareholders approved the plan, with under 13 percent voting against it.

At the vote meeting, Chairman Marcus Agius apologized to shareholders for needing to raise the money.

"We greatly regret the experience that our shareholders have had over the last 12 months," he said. "Barclays shares have fallen a lot during that period and you have had to endure a great deal."

The agreement will see the bank accept roughly 5.3 billion pounds from a trio of private investors from Qatar and Abu Dhabi as well as 1.7 billion pounds from other investors.

The deal had been dogged with controversy since it was originally announced last month.

Two key shareholder advisory groups suggested it had no advantage over a government bailout accepted by three of Barclays' rivals, and some existing investors were angry that they hadn't been given the option to buy all 7 billion pounds of new shares before they were offered to Mideast investors.

However, last week Barclays appeased shareholders by portioning off 500 million pounds of preference shares off the proposed Mideast investment and offering it to institutional investors. All those shares — which pay an annual interest rate of 14 percent for 10 years — were snapped up in one day.

Barclays' shares closed up 9.98 percent at 146.50 pence ($2.22) on Monday, as uncertainty over the deal vanished and markets welcomed the news the bank would be bolstered by the cash injection.

Back To Top