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Lawsuits/Arbitrations

Barclays Ordered to Hand Over Emails Linked to Its Raising of Capital in 2008

February 5, 2017

PCP Capital Partners, a private-equity group is suing the Barclays Plc, saying that it made “sham payments” to encourage Middle Eastern investors to pump billions of dollars into the lender at the height of the financial crisis. A U.K. judge in that case, on Friday, ordered Barclays to hand over emails detailing its 2008 emergency capital raising to PCP Capital.

 

Now, the bank must 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 £7.3 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 £3.5 billion chunk of the capital injection into Barclays by Abu Dhabi investors. PCP is suing Barclays for £721 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 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 2018.