A clause in the terms of the Abu Dhabi Royal Family’s investment in Barclays, agreed last October, makes it practically impossible for the Government to take a meaningful stake in the bank, reports The Times. The news is likely to reignite controversy over the way that Barclays raised the money. Barclays shares fell another 9% on Wednesday, having collapsed by 35% at one point, amid speculation it is poised to raise more capital — either in the market or from the Government. But the small print in the deal, in which Barclays raised £7.3bn from Abu Dhabi and Qatar, means that if the bank raises fresh capital before end-June, the Middle Eastern investors would receive a greater number of shares for their original investment without paying more.

This entry was posted by Gwen Robinson on Thursday, January 22nd, 2009 at 5:50 and is filed under Capital markets, M&A, People. Tagged with barclays. Edit this entry.