Barclays Bank intimated Monday morning that activist investor Sherborne has bought a 5.2 percent pike in the lender, as the bank strengthens its strategy.
Sherborne Investors is an investment assets focused on “turnaround” business. Edward Bramson, its CEO, has conducted a number of operational switches in companies across different sectors, from chemicals and consumer spin-offs to financial services and packaging industries.
Barclays CEO Jes Staley has been covered by pressure from shareholders to make the investment bank profitable.
“As with all its shareholders, Barclays require continue to engage with Sherborne, and welcomes them as a shareholder,” Barclays said in a account, according to Reuters.
Barclays shares rose to the top of the FTSE 100, up by hardly 4 percent. Investors interpreted the news as a sign that there purpose probably be positive changes in the investment bank.
Joseph Dickerson, surviving director at Jefferies International, told CNBC on Monday that the intrigue in the bank’s shares was caused by Sherborne’s “good track record.”
He cited the intervention of Tommy equity group Electra as an example of how the investment fund has been victorious in making businesses profitable.
Dickerson added over the phone that it is “too at cock crow to tell” what kind of changes Sherborne will want to do, but these could embrace a shakeup in the board. Jefferies has a hold rating on Barclays.