Middle East investors would see their stake in Barclays Plc rise at no extra cost if the British bank raised funds at current depressed prices, under a clause in last October's fundraising deal, a person familiar with the matter told Reuters today. But the investors from Qatar and Abu Dhabi do not expect the bank to need to raise any funds. Middle East investors pumped 7 billion pounds ($9.7 billion) into Barclays in October, and a clause in that deal said if the bank raised more capital before June they would receive a greater number of shares for their original investment. The clause was inserted by advisers to the investors to protect them being diluted if Barclays raised funds at a lower level, a person familiar with the matter said. It relates to up to 4.3 billion pounds of mandatorily convertible notes issued under the deal, which are due to convert at 153.276 pence.
