Citytillidie69 said:
Ferrari shareholding 5% they have no involvement or say even with a 114 million euro investment.
They also invested £7.5billion in Citibank - they are classed as and want to act as "passive" shareholders and have NO say in the running of the bank.
Now I am not making any comment on the business accumen of the Arabs as we actually have no real knowledge of how good or how bad they are, I was just pointing out why they are investing.
Have you any grasp of the acumen used by Sheikh Mansour when he just last month became the biggest shareholder in Barclays Bank?
You realise that this deal was put in place to guarantee City working capital for the future..?
"Barclays will issue 3 billion pounds of reserve capital instruments (RCIs), which will pay annual interest of 14 percent until June 2019.
In conjunction with the RCIs, investors have subscribed for warrants to buy up to 1.5 billion new shares at an exercise price of 197.775 pence per share, or 3 billion pounds in aggregate. The warrants are exercisable at any time for a five-year term from the date of issue. Barclays shares closed on Thursday at 205.25p.
The RCIs will pay an annual coupon of 14 percent until June 2019 and 3-month LIBOR plus 13.4 percent thereafter.
The RCI coupon is tax deductable and after tax the coupon will be about 10 percent.
After adding in the warrant value, the cost of the instrument is comparable with preference shares other banks are likely to issue, said Chris Lucas, finance director.
The RCIs will qualify as tier one capital.
Barclays will also issue 4.3 billion pounds of mandatory convertible notes (MCNs).
Some 2.8 billion pounds of MCNs are being issued to Qatar and Sheik Mansour Bin Zayed Al Nahyan. A further 1.5 billion pounds of MCNs are being offered to existing institutions and other investors through an accelerated placing, being run by Barclays Capital, Credit Suisse and JPMorgan Cazenove.
All the MCNs will pay an annual coupon of 9.75 percent until conversion into ordinary shares before the end of June 2009. Conversion will result in the issue of 2.8 billion new shares, representing 33.5 percent of Barclays' existing share capital. The conversion price is 153.276 pence.
The bank said offering full pre-emption rights to shareholders would have taken too long and been too risky in current markets. "We thought it better to have certain money and quickly," said Marcus Agius, Barclays chairman.
INVESTORS:
Barclays is raising up to 3.5 billion pounds from Sheikh Mansour Bin Zayed Al Nahyan, which will give him a 16.3 percent stake in the bank"