Barclays hopes to avoid tapping into the British government’s bank aid program thanks to 7.3 billion capital investment from Abu Dhabi, Qatar and others, Bloomberg reports.
“The good news is they have managed to raise the money and have avoided going cap in hand to the government or pursuing a heavily discounted rights issue,” says Alan Beaney, head of investments at Principal Investment Management in Leeds, who manages $2 billion including Barclays’ shares. “On the other hand, instead of being diluted by the U.K. government, shareholders are being diluted by sovereign wealth funds.”