Barclays set for fundraising vote
Added (2008-Nov-25)
Barclays is set to face a shareholders' vote on Monday over its controversial £7bn capital raising plan.
In October, Qatar Holding and HH Sheikh Mansour Bin Zayed Al Nahyan agreed to invest billions in Barclays.
Unlike other UK banks, Barclays opted not to accept a government rescue deal - despite this being seen as a cheaper way to raise capital.
While reports say it is expected that the deal will be approved, uncertainty over the outcome still remains.
Previously the bank has said raising cash from the Middle East would keep it "strong and independent".
Last week the bank took the unusual step of saying that "in recognition of the extraordinary circumstances" of the way it raised money from a Qatar state investment fund and an Abu Dhabi royal, all its directors would offer themselves for re-election at its AGM in the spring, rather than the standard third.
The firm also said its top executives, including president Bob Diamond and chief executive John Varley, would not be paid bonuses for 2008.
The Observer reported that while there had been opposition to the capital raising plan, shareholders would be "reluctant" to vote down the deal for fear of undermining the value of their investment.
Barclays recently issued a statement saying: "A number of meetings and conversations have taken place between senior officers of Barclays and Barclays major institutional shareholders.
"The discussions have been constructive and the board of Barclays has listened carefully to shareholders' views."
The bank needs approval from 75% of investors who vote, though there is expectation that many might abstain.
Barclays was not available for comment.
