Barclays’ shares fall on imminent fundraising deal
LONDON (AP) — Barclays PLC’s shares fell 7.5 percent on Wednesday on the growing likelihood that a 7 billion pound ($10.6 billion) fundraising deal, expected to erode shareholder value, will be approved.
Barclays, Britain’s second largest bank, said earlier Wednesday that institutional investors had agreed to buy all 500 million pounds ($750 million) worth of preferred stock offered to them on Tuesday. The stock was previously part of a larger offering earmarked for a trio of private investors in the Middle East, but was opened up to existing shareholders after complaints poured in.
The successful sale suggests leading shareholders will vote in favor of the wider plan, worth 7 billion pounds, at a meeting next week.
Prior to Barclays offering the shares to institutional investors, there had been growing speculation that stockholders would reject the deal as two key shareholder advisory groups suggested the deal had no advantage over a government bailout accepted by three of Barclays’ rivals.
continue reading at http://www.google.com/hostednews/ap/article/ALeqM5giriKmqIEgdapV8tGu4_8mDLyuOAD94I6OSG0
