Barclays Share Price: Bank Faces Claim from Saudi Businessman

on Sep 11, 2013
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iNVEZZ.com, Wednesday, September 11th: Barclays Plc (LON:BARC) is facing a $10 billion (£6.3 billion) damages claim from a Saudi businessman, the Financial Times has reported. The news of a potential lawsuit comes at a sensitive time for the UK lender which last week unveiled details of its upcoming £5.8 billion rights issue. Barclays’ shares were trading less than one percent down in London on Wednesday morning.

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**Barclays Reportedly Facing $10 Billion Damages Claim**
According to court documents filed in New York last week, Mohammed bin Issa al Jaber, chairman of MBI International and founder of the Jadawel property group, has demanded that US law firm White & Case hand over documents related to a ten-year-old settlement between Barclays and two Saudi Arabian ministers, the FT has reported. Jaber and his company alleged that the UK lender had conducted “corrupt activities” in Saudi Arabia which resulted in a $10 billion loss in revenue for the businessman’s companies.

“In exchange for assistance in obtaining valuable licence to conduct banking activities in the Kingdom and other undisclosed corrupt activities, Barclays conspired with certain officials of the Kingdom to injure petitioners’ business, reputation and access to credit,” the documents read. The FT also reported that so far no documents in response to the claims have been filed and that hearing has been ordered for next month.

**New Technology Expected to Drive Cost Savings at Barclays**
In a separate development, Reuters yesterday quoted Barclays’ chief executive Antony Jenkins as saying that operations and technology improvement should deliver £800 million of savings in the next three years. Speaking at a banking conference in New York, Jenkins noted that there was “a massive opportunity to create a much better customer and client experience at structurally lower cost, with better control and quality”.

“This is now the time when we finally see technology creating a different sort of banking experience,” he said.
!m[UK Lender Expects New Technology to Drive Half of Its Cost Savings](/uploads/story/5397/thumbs/pic1_inline.jpg)
Jenkins, 52, who took over as Barclays’ chief executive in August 2012, has pledged to save £1.7 billion in expenses by 2015, axe 3,700 jobs and reduce costs to about 55 percent of income from 71 percent in the first quarter of 2013. Barclays has said that £700 million of cost savings would come from the front office and £200 million from human resources, finance and risk.

Last month, Barclays was forced to unveil plans to raise £5.8 billion from shareholders after the UK financial regulator said that the bank needed an extra £12.8 billion to cushion it against potential market shocks.
The new shares will be offered to existing shareholders at 185p, or a 40 percent discount to Barclays’
share price on the day before the issue was announced, and are expected to start trading on October 3.
**As of 10:02 BST buy Barclays shares at 305.70p.**
**As of 10:02 BST sell Barclays shares at 305.55p.**

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