Barclays draws up contingency plans as it awaits the next move from activist investor Edward Bramson
Barclays has drawn up contingency plans as it awaits the next move of activist private equity investor Edward Bramson, after the bank last week disclosed he had built a five per cent stake in the firm.
The lender consulted Deutsche Bank and JP Morgan, its corporate brokers, after learning of the stake to discuss what the renowned New York-based investor’s aims might be.
Bramson, who invests through his Sherborne Investors Management vehicle, met Barclays’ head of investor relations and its company secretary after the lender announced its full-year results. Bramson was in “listening mode” during that meeting, according to a person with knowledge of the discussion.
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However, Bramson and his associate, Stephen Welker, who rarely speak publicly, have so far not given any public indication of its plans with the stake, and he is yet to ask for a meeting with Barclays chief executive Jes Staley.
Barclays has consulted its top investors since the disclosure to discuss its next steps. There has as yet been no indication that Bramson has made any approaches to other major investors to canvass their views. Large shareholders include the Qatari government, the China Development Bank, and the US investment giants Capital Group and Blackrock.
The five per cent stake, worth around £1.5bn at the share price at the end of last week, allows Sherborne to call extraordinary general meetings to put motions to shareholders, including over board appointments.
Read more: Activist investor Edward Bramson takes five per cent stake in Barclays
However, Bramson may also have to contend with regulators if he tries to force his way onto the Barclays board, given its status as one of the UK’s global systemically important banks.
The move, which surprised analysts and caused shares to jump by 3.5 per cent on Monday before retreating, has prompted a fresh wave of speculation on whether the bank can fend off an attempt by a large investor to change its turnaround plans.
Staley has come under periodic pressure to move capital away from its underperforming investment banking division towards more profitable businesses, while another option for increasing shareholder value might be the sale of its US cards business.
Sherborne did not respond to a request for comment. Barclays declined to comment.
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