Activist investor Ed Bramson has once again appealed to Barclays’ shareholders to give him a seat on its board in the run up to the bank’s 2 May annual general meeting.
Bramson’s company, Sherborne Investors, today sent a letter to Barclays shareholders, marking a continuation of the war of words between the two parties.
The letter sent today by Sherborne, which owns 5.5 per cent of Barclays shares, warned shareholders that the bank’s low valuation “will continue until the board finally adopts a strategy that is more realistic and shareholder orientated”.
“An alternative voice on the board would seem to be healthy for the company and its shareholders,” Sherborne wrote.
It said: “[O]ur firm now has almost £1bn at risk in Barclays.”
On Friday the UK bank said the US activist “would be a disruptive and uncollaborative influence on the board”.
Sherborne said it had a proven record of delivering “major increases in value for all of the shareholders in their companies while we were a shareholder and for years thereafter”.
It finished: “After such a long period of avoidable underperformance, we respectfully request that, in the interests of all shareholders, you vote in favour of Resolution 24 to elect Mr. Edward Bramson, an experienced member of our firm, to the board of Barclays.”
Last week Bramson again called for Barclays’ investment banking division to be scaled back and said the strategy to commit more resources to the division was “untenable”.
Earlier this month Tim Throsby, the head of Barclays’ investment bank, quit and it was announced that the new leadership if the Corporate and Investment Bank’s (CIB) three divisions will report directly to chief executive Jes Staley.
Barclays reported better-than-expected results in its investment banking division in February.