Barclays shareholder revolt against Middle East investment

Major shareholders in Barclays (LON:BARC) said that they will vote against the British bank over a capital injection of $11 billion from investors in the Middle East.

Legal & General Investment Management who own five percent of Barclays and Aviva Investors who own one percent are both appealing for the British bank to amend the terms of the deal with the Qatar Investment Authority and Sheikh Mansour Bin Zayed Al Nahyan of Abu Dhabi according to the Financial Times.

Barclays have indicated that it will look into amending the agreement, in light of the revolt at the meeting Next Monday, November 24.

The British bank did not take the government bail-out and saw the capital investment from the Middle East as a suitable alternative.

If the deal goes ahead, Barclays will be giving up to a 16.3 percent share in the bank to the new investor Sheikh Al Nahyan. Shareholder in Barclays said that the deal was sprung on them and they see it as dilutive and expensive, and that the bank will be in no better position than if it took the government bail-out.

Source: afp.google