Barclays Ordered to Hand Over Emails Linked to 2008 Capital Raising
February 03 2017 - 1:56PM
Dow Jones News
By Max Colchester
A U.K. judge on Friday ordered Barclays PLC to hand over emails
detailing its 2008 emergency capital raising to PCP Capital
Partners, a private-equity group suing the bank alleging it made
"sham payments" to encourage Middle Eastern investors to pump
billions of dollars into the lender at the height of the financial
crisis.
The judge ordered Barclays to pass on a trove of documents,
including emails from former senior bankers, which may help shine a
light on how the U.K. bank wooed Qatari investors to join a GBP7.3
billion capital raise as the bank wobbled amid a financial market
meltdown.
PCP Capital, run by Amanda Staveley a financier with deep
connections in the Gulf, helped put together a GBP3.5 billion chunk
of the capital injection into Barclays by Abu Dhabi investors. PCP
is suing Barclays for GBP721 million alleging the bank gave Qatari
investors a more favorable deal than Abu Dhabi by handing them
"sham payments." PCP also alleges that Barclays lent Qatar
investors $3 billion to invest back into the bank. A Barclays
spokesman declined to comment on the ruling . the bank has said the
claim is without merit and will defend it in court.
Barclays has said it paid GBP322 million in "advisory services"
to Qatari investors, which weren't initially disclosed after the
capital raise. The U.K.'s Financial Conduct Authority imposed a
GBP50 million fine over the disclosure failures. Barclays is
contesting the fine. The Serious Fraud Office is probing the
payments and expected to decide whether to file criminal charges by
the end of March.
PCP wanted access to emails detailing the transactions from
Richard Boath, a banker who used to work at Barclays until he was
dismissed earlier this year. A spokesman for Mr. Boath declined to
comment.
Barclays had sought to delay the disclosure of these documents
for several months. On Friday, a British judge ruled that the
emails, which are "of particular significance," be handed over to
PCP by Monday afternoon. The emails include correspondence from a
private email account belonging to a senior banker working with
clients in the Middle East, who played a key role in the capital
raise.
A trial is due to start in January of next year.
Write to Max Colchester at max.colchester@wsj.com
(END) Dow Jones Newswires
February 03, 2017 13:41 ET (18:41 GMT)
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