Distance in ( Kilometers ) 50

Barclays has admitted it was told the investor might change shortly before shareholders voted to approve the deal on 24 November 2008.
But instead of telling shareholders, the bank remained silent until the change of investor was confirmed a few hours later.

The bank said it subsequently provided “appropriate disclosure” in three prospectuses that were issued the following day.
But the disclosure was buried deep in the small print and said that Sheikh Mansour “has arranged for his investment…to be funded by an Abu Dhabi governmental investment vehicle, which will become the indirect shareholder”.
Barclays still used the phrase “his investment”, even though it knew Sheikh Mansour was not actually investing in the bank at the time.
The bank continued to mislead shareholders in its annual reports of 2008 and 2009, both of which identified Sheikh Mansour as the investor
Barclays said the mistake in its accounts was “simply a drafting error” and that the information provided in the prospectuses was “entirely appropriate in all the circumstances”.
The bank also said: “The shareholders meeting had already taken place and there was therefore no need to issue press releases or additional formal communications to shareholders/other market participants.”

Professor Alistair Milne, an expert on financial regulation in the City, said banks are expected to release accurate information about major deals.
“Any discrepancy of that kind is serious because it raises questions in the minds of investors. Every bank is well aware the annual report is a critical document and a huge amount of time and attention is put in to trying to get all the details correct.”
The Abu Dhabi government investment vehicle that provided the funding, International Petroleum Investment Company (IPIC), was not mentioned in any Barclays’ announcements until six months after the deal.

Business Hours

Listing Timezone: Asia/Kolkata
  • Mon
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