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Barclays investors back fundraising drive

Friday, October 04, 2013 - 01:18

Oct. 4 - 95% of Barclays investors have signed up to buy more shares in the bank, which is raising almost 6 billion pounds, to satisfy demands by the UK regulator. Kirsty Basset reports.

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95 - is today's daily digit. That's the percentage of Barclays' investors who decided to take the company up on its 6 billion pound rights issue, the biggest by a British bank since 2009. It's a vote of confidence in the bank, says George Hay from Reuters BreakingViews. (SOUNDBITE)(ENGLISH) REUTERS BREAKINGVIEWS COLUMNIST GEORGE HAY SAYING: "Shareholders are saying - we agree with your strategy, we're supporting it. So it's good news for them." The bank is raising 5.8 billion pounds, or 15 percent of its market value - to satisfy UK regulators, who say it needs the cash to fill a capital shortfall. But if regulators decide to up the current capital requirement of total assets from 3 to 4 percent - the bank may need to decide between another rights issue - or slimming down its investment bank. (SOUNDBITE)(ENGLISH) REUTERS BREAKINGVIEWS COLUMNIST GEORGE HAY SAYING: "The investment bank is still massive. It's 1 trillion pounds of assets. And it's just a question of whether Barclays can just trim that down, rather than go through all the bother of another rights issue, or just retain more capital than they want to." The shares which weren't taken up by investors were sold on Friday at 268 pence, a small discount to the bank's Thursday close of 273 pence.

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Barclays investors back fundraising drive

Friday, October 04, 2013 - 01:18