Activist investor Sherborne sells Barclays stake (updated)
07/05/2021 07:29
(Adds detail, background)
FRANKFURT, May 7 (Reuters) - Sherborne Investors, the firm
led by activist investor Edward Bramson, has sold its 6% stake
in Barclays, it said on Friday, disbanding its efforts to
overhaul the British bank.
Sherbone took a position in Barclays in 2018, with Bramson
calling on the lender to scale back its investment bank which he
said weighed down returns. However he struggled to gain much
traction and failed in an attempt to get elected on to the
bank's board.
Sherborne said it had identified a new company to invest in
instead.
"Sherborne Investors has informed the company that it
believes that the risk of and rewards from a new investment
opportunity that it has identified offers a better return to the
company's shareholders than a continuing investment in
Barclays," it sad in a statement.
The departure of the investor, which is backed by several
major British fund firms including Aviva and Schroders, marks
the end of a three-year-long tussle with Barclays' management.
Sherbone first declared its stake in Barclays in March 2018,
since when the share price has fallen, and is currently 15%
lower than when the fund's position became public.
Barclays had been under pressure to bolster profits after
Staley's aggressive push in investment banking since he joined
in 2015 failed to significantly lift returns.
However a strong showing by the investment bank helped it
weather the impact of the COVID-19 pandemic, bolstering Staley's
strategy that the bank needs a diversified business model to
generate recession-proof returns.
(Reporting By John O'Donnell
Editing by Rachel Armstrong)
((john.odonnell@thomsonreuters.com; +49 69 7565 1366; Reuters
Messaging: john.odonnell.thomsonreuters.com@reuters.net))