Business

Barclays faces £700m legal action

Amanda Staveley Image copyright Getty Images
Image caption Amanda Staveley

Barclays has confirmed it is being sued for more than £700m by deal-maker Amanda Staveley in connection with its emergency fundraising in 2008.

The Financial Times reported that Ms Staveley's firm, PCP Capital Partners, had taken legal action against the bank in London.

The fundraising at the height of the financial crisis aimed to bolster Barclays' financial health and prevent a UK government bailout.

The bank will contest the action.

"We believe the claim against Barclays is misconceived and without merit and Barclays will be vigorously defending it," it said in a statement.

Ms Staveley told the FT that a claim against Barclays had been filed in the High Court, but declined to comment further on the exact nature of the action.

She is seeking damages of as much as £720m.

PCP Capital Partners invested £3.5bn in Barclays in October 2008 on behalf of Abu Dhabi's Sheikh Mansour bin Zayed Al Nahyan.

Barclays also raised £5.3bn from Qatari investors that year.

Image copyright Getty Images

In September 2013 the Financial Conduct Authority (FCA) said Barclays had "acted recklessly" and breached some rules over disclosing some aspects of the Qatar deal.

The regulator said it planned to impose a £50m fine on the bank, which has contested the findings.

The FCA accused the bank of agreeing £322m in secret payments to Qatari investors to gain their support for a £5bn fundraising in 2008.

Barclays said the fees were for giving advice.

The Serious Fraud Office is also conducting a criminal investigation into the cash call.

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