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Barclays shares hit by stake sale Barclays shares hit by stake sale
(about 1 hour 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. Shares in Barclays have fallen 14% 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. Abu Dhabi firm International Petroleum Investment Company (IPIC) sold 1.3 billion Barclays' shares, making a £1.5bn profit, according to Reuters.
In 2008, Barclays raised £7bn from Middle East investors to avoid using government funds to boost its finances.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. At 0955BST, Barclays shares were down 14% at 273 pence, 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. Late on Monday, IPIC - which is owned by the Abu Dhabi government - 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. On Tuesday traders said the shares were placed at around 267 pence each.
"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. IPIC also said it would look into selling £1.25bn worth of another type of investment in Barclays.