Investors shun US activist in Barclays battle

CORPORATE raider Edward Bramson’s bid to join the Barclays board faces opposition from his fund’s own investors.

He is demanding a non-executive job at Barclays after his firm Sherborne became one of its largest shareholders – but there is growing City scepticism at the plan.

Many Sherborne backers are huge institutional investors who also own major stakes in Barclays. But none of them welcomed his proposals last night.

Around 13pc of Barclays stock is owned by Sherborne and its shareholders, giving them major influence over Bramson’s bid.

New Yorker Bramson, 68, set out his plans to join the board in a scathing letter which attacked the performance of Barclays’ prized investment bank and hinted he wants to break it up. But even those who agree are concerned he has not set out any solutions.

Firms with both Sherborne and Barclays stock include Standard Life Aberdeen, Schroders and Fidelity International. Aviva Investors, Invesco, Jupiter Asset Management, Columbia Threadneedle and Swiss bank UBS also have shares in both.

One major Barclays investor, who also owns Sherborne stock, said: ‘He raises some good points but they’re maybe overly aggressive. Barclays is doing a good job overall.’

A source at another investor in both Sherborne and Barclays added that it has not yet decided how to vote.

Richard Buxton, the boss of Merian Global Investors and backer of both Sherborne and Barclays, said last year Bramson’s timing was bizarre.

Barclays’ chiefs are likely to fiercely resist Bramson’s push for a board seat. Any row could even suck in regulators from the Bank of England.

Sherborne and Barclays declined to comment.