Barclays stocks soar as Legal & General back capital fundraising plan
Nov 21, 2008 | Comments 0
In early trade today Barclays (BARC.L) shares went up over 3 percent after Legal & General Investment Management (LGIM) one of Barclays top investors and part of Legal & General (LGEN.L) said they would vote in favour of the capital fundraising plan although it does not like the way the controversial deal is set out.
By 8.30am in London, Barclays shares rose 3.2 percent at 131.8p, earlier the shares had risen to 133.4p.
The Barclays deal had become controversial after the terms offered to the investors in Abu Dhabi and Qatar were better than those offered to existing share holders.
LGIM said in its statement “We recognise that in these exceptional circumstances, a failure to secure this capital could lead to a material (deterioration) in shareholder value”.
Reports had previously been circulated saying the LGIM would probably vote against the deal. However, Barclays shareholders will be voting on the deal this coming Monday, it’s expected that Barclays will get the go-ahead on the capital fundraising plan.
Source: Reuters
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