Barclays Fundraising in Doubt

An attempt by Barclays bank to raise Gbp4bn (US$7.8bn) from sovereign wealth funds (SWF) faces a set back after a member of Qatar's royal family complained about an alleged EUR 50m (US$78m) fraud in Spain.

Sheikh Abdul Aziz bin Khalifa Al-Thani is to write a letter to the board of Barclays complaining about negligence and his treatment by the bank. The Sheikh claims Barclays still owes him EUR 42m as a result of a fraud committed against him about five years ago.

The complaint, which is being aired publicly, is likely to embarrass Barclays as it is in the process of trying to raise funds from SWFs including the Qatari Investment Authority, which is controlled by the Sheik's family. According to a report in the Financial Times, the letter is to carry thinly veiled references to the fund-raising and warns of implications resulting from the Bank's stance over the Sheik's claim.

However, the article citing sources in Qatar casts doubt on whether the Sheikh has the power to derail Barclays' fund raising efforts given that he is not one of the members of the royal family who holds a significant amount of power.

Source: Thomson Merger News