This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8078362.stm
The article has changed 5 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Barclays shares hit by stake sale | |
(about 2 hours later) | |
Shares in Barclays have fallen sharply after news that one of the largest Middle Eastern investors in the firm sold a stake worth about £3.5bn. | |
Abu Dhabi firm International Petroleum Investment Company (IPIC) sold 1.3 billion Barclays' shares, at 267p each, according to Reuters. | |
In 2008, Barclays raised £7bn from Middle East investors to avoid using government funds to boost its finances. | |
But shareholders were unhappy, saying the move had diluted their stakes. | But shareholders were unhappy, saying the move had diluted their stakes. |
At 0900BST, Barclays shares were down 13%, the biggest loser among the FTSE-100 index of leading share. | |
Of the £7bn raised last year by Barclays, £5.8bn came from Abu Dhabi and Qatar investors. | Of the £7bn raised last year by Barclays, £5.8bn came from Abu Dhabi and Qatar investors. |
Late on Monday, IPIC said it intended to sell Barclays' convertible notes equivalent to 1.3 billion shares. | |
The latest sale is expected to make about £1.5bn profit for IPIC. | |
"The decision to dispose of some of its interests in Barclays reflects the focus of IPIC's long-term investment strategy on hydrocarbon-related opportunities," said IPIC managing director Khadem Al Qubaisi. | "The decision to dispose of some of its interests in Barclays reflects the focus of IPIC's long-term investment strategy on hydrocarbon-related opportunities," said IPIC managing director Khadem Al Qubaisi. |
"The Emirate of Abu Dhabi intends to maintain a close commercial and strategic relationship with Barclays in the future," he said. | "The Emirate of Abu Dhabi intends to maintain a close commercial and strategic relationship with Barclays in the future," he said. |
IPIC also said it would look into selling £1.25bn worth of another type of financial investment in Barclays. |