Participate in Barclays It fell as much as 6% in early trading Tuesday, after one of the bank’s top investors dumped $1.2 billion in shares at a discount overnight.
An unnamed investor sold 599 million shares Monday night, facilitated by Goldman Sachs. According to Refinitiv Eikon data, the shares are roughly equivalent to 3.6%.
The sale deals another blow to Barclays, just a day after it exposed a compliance error that led to an estimated loss of 450 million pounds ($589 million) due to increased selling of structured products in the United States.
Barclays
(pecs) Shares were down 3.3% at 115.22 pence at 05.04 AM ET Tuesday. Shares fell 4 percent on Monday after the bank said it had oversold billions of pounds worth of securities over about a year, exceeding the $20.8 billion cap agreed with US regulators by $15.2 billion.
An informed source said the products in question include exchange-traded bonds linked to crude oil and market volatility. Barclays halted sales and release of both this month.
The Barclays stake sale was priced at 150 pence ($1.96) on Tuesday, toward the top of the target range of 147.50 pence to 150.75 pence, but that still represented a greater than 6% discount from Monday’s closing price, weighing on the stock price.
A person involved in the deal told Reuters that the sale was just over 575 million shares set on Monday night, with a net oversubscription of 899 million pounds ($1.18 billion) for the seller, adding that the oversubscription was several times oversubscribed.
The Capital Group emptied 399 million shares on Monday, according to Eikon data, but it was not clear if the sale was related to a deal managed by Goldman Sachs.
The Capital Group – one of the world’s largest investment firms, and the mother of the American Funds brand popular with millions of US investors and retired savers – declined to comment.
Other major Barclays shareholders who own about 3% of Barclays shares include the Qatar Investment Authority (QIA) and Black stoneAccording to data from Refinitiv Eikon.
Black stone
(BLK) He declined to comment when contacted by Reuters on Monday, while the Qatar Investment Authority could not be reached for comment.
Barclays said it would have to delay its planned £1 billion ($1.3 billion) share buyback due to the loss in US structured products, which it would have to incur as a result of buying back the securities in question at the original purchase price.
Regulatory error is an early test of CS Venkatakrishnan, newly appointed CEO of BarclaysHer previous roles included heading the bank’s global markets and risk management operations.