Barclays is one step closer to Middle East deal

Barclays (LON:BARC) deal with Middle Eastern Investors is sure to go ahead due to an ‘Amber Top’ notice from the Association of British Insurers (ABI) ahead of next Friday’s meeting to reach the verdict on the bailout.

John Varley the CEO and Marcus Agius chairman of Barclays met with the ABI who represents institutions who own almost a fifth of the stock market to discuss the £7 billion bailout that is mostly is injected by the Middle East.

An Amber notice from the ABI signifies that the deal does raise some concerns but not enough concerns for them to vote against the deal.

However, shareholders do not feel that the Middle East deal is better than the deal from the UK Treasury that Royal Bank of Scotland (RBS), Lloyds TSB and HBOS all agreed to.

Barclays have said that the deal with the Abu Dhabi Investors and Qatari can be re-negotiated, but if the deal is scrapped, Barclays will have to pay £300 million to the investors for breaking the £7 billion bailout deal off.

Source: thisismoney