Barclays drops as Abu Dhabi fund hedges position

Discussion in 'Stocks' started by ASusilovic, Oct 8, 2010.

  1. Shares in Barclays PLC fell 3.6% in early trading Friday after an Abu Dhabi investment fund announced a deal to hedge its significant exposure to the bank. The PCP Gulf Invest 3 fund said in a statement late Thursday that it had entered a derivative transaction with Nomura International to protect the value of warrants it holds in Barclays and complete the hedging of its entire interest in the bank. As part of that transaction, it said Nomura would sell around 220 million shares of Barclays. Nomura offered the shares to institutional investors at between 290 pence and 295 pence each, according to a Bloomberg report, the shares closed at around 304 pence on Thursday.

    http://www.marketwatch.com/story/barclays-drops-as-abu-dhabi-fund-hedges-position-2010-10-08

    Must have a reason why Abu Dhabi is hedging its position, or gentlemen ?