Despite the entire £500million of shares being taken up, Barclays’ share price tumbled 13 per cent yesterday to 129.6p, valuing the bank at £10.8billion, the lowest it has been worth since 1994.

Shareholders in Barclays felt they had been neglected when it offered the RCI shares (Reserve Capital Instruments) to its Middle Eastern investors without making the same investment opportunities available to its other existing shareholders.

The bank had been planning on selling the £500million of shares to Middle Eastern shareholders in Qatar and Abu Dhabi as part of a £7billion fundraising scheme.

Barclays turned down funding from the Government’s £37billion plan to restore stability in the UK financial system in favour of going it alone, opting to raise the money independently instead.

The move to calm angry shareholders was made ahead of a vote next week which will determine the fate of Barclays’ £7billion capital raising plans, which, if they go ahead, will give its Middle Eastern investors almost a 30 per cent stake in the bank.

© Fair Investment Company Ltd