It was only last autumn that Barclays’ chief executive, John Varley, angered investors by turning to a group of middle east investors for a £7bn capital injection, on what were perceived as very generous terms. Management justified the fund-raising, which largely excluded existing investors, by emphasising how the move would forge long-term strategic relationships in the region. But such ambitions now look long forgotten after the International Petroleum Investment Company (IPIC) - the Abu Dhabi royal family's investment vehicle - offloaded its stake this week.
IPIC’s move looks motivated by little more than a desire to take profits - Barclays' shares have risen about 440 per cent since January, to 276p. Although IPIC wasn't about to admit as much: "The decision to dispose of some of its interests in Barclays reflects the focus of IPIC's long-term investment strategy on hydrocarbon-related opportunities," insisted IPIC’s managing director, Khadem Al Qubaisi.
IPIC sold 1.3bn shares at 265p each and raised about £3.46bn; a hefty return on the £2bn it originally invested. The fund continues to hold warrants for 758.4m shares, exercisable at 197.775p each.
