Barclays shares up as L&G backs fundraising plan

Source: Reuters

Date :22/11/2008 00:06:01

Barclays has faced a backlash from shareholders angry that investors in Qatar and Abu Dhabi are buying complex capital instruments on more attractive terms than existing investors have been offered.

By 8.30 a.m., Barclays shares were up 3.2 percent at 131.8 pence, after rising as high as 133.4p.

LGIM said it regretted the plan but said it will vote in favour. "We recognise that in these exceptional circumstances, a failure to secure this capital could lead to a material (deterioration) in shareholder value," the investor said.

LGIM had been prepared to vote against the deal, according to reports last week.

Barclays investors are due to vote on the deal on Monday. The bank is expected to get approval, but could see a high level of abstentions, analysts have said.

(Reporting by Steve Slater; Editing by David Holmes)