Activist investor Edward Bramson could seek shareholder approval for board changes at Barclays (LON:BARC) after being denied a seat at the top, Bloomberg has reported. Bramson’s vehicle Sherborne Investors snapped up a little over five percent in the blue-chip lender last year.
Barclays’ share price has climbed higher in London in today’s session, having gained 1.67 percent to 158.02p as of 14:54 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.14 percent higher at 6,886.45 points. The group’s shares have lost just under 21 percent of their value over the past year, as compared with about a 10.4-percent fall in the Footsie.
Bramson to seek board changes
Bloomberg reported last night that Bramson had said in a letter to his investors in December that he would seek a shareholder vote to obtain a change in the ‘composition of the board’ after Barclays spurned an offer from him to become a non-executive director.
“After considering the situation carefully, we do not have confidence that continued engagement with the company, strictly as an outsider, will produce any more measurable results in the future than it has to date,” he pointed out, adding that he could either seek the board changes at the lender’s annual general meeting in May, or call a separate session for shareholders.
Activist investor defence
Bramson emerged as one of Barclays’ biggest shareholders last year, with more than a five-percent stake in the lender. Bloomberg reports that the FTSE 100 group has retained Goldman Sachs specifically to advise on defence against the activist, and that has also tapped JPMorgan Chase & Co. and Deutsche Bank AG for advice, along with its own internal corporate broker team.