Yahoo Finance Activist investor Ed Bramson steps up Barclays battle with push to influence next chairman choice
Corporate raider Ed Bramson has opened a new front in his battle with banking giant Barclays after revealing plans to push to steer who the banking giant picks as its next chairman.
In half-year results posted today, Mr Bramson’s investment vehicle Sherborne said it wants to influence the “search process for and mandate of a new chairman”.
Barclays' current chairman - the City veteran John McFarlane - told investors at the bank's annual general meeting in May that he had instructed the board to prepare to search for a successor.
But he dismissed speculation he was planning a swift departure, saying he had always intended to serve for a “minimum of four years”, adding: “You are not getting rid of me yet.”
Mr McFarlane has been chairman for just over three years.
Speculation has been rife as to Mr Bramson’s intentions for Barclays ever since it emerged he had built a more than 5pc stake in the lender in March.
Mr Bramson has previously used holdings in UK firms including fund manager Electra to oust management teams and secure root-and-branch overhauls.
It is understood Mr Bramson has pressed the case with other investors in recent months for Barclays to downsize its riskier investment bank in order to focus on its more profitable retail operations.
But he and Sherborne had not commented publicly on their plans for Barclays until today.
Sherborne said it was “engaging with Barclays” on issues including “capital allocation, quality of earnings, capital adequacy, cost structure, and the search process for and mandate of a new chairman”.
It said “addressing these matters” could improve Barclays’ “financial strength and its long-term competitive position”. It did not comment directly on Barclays’ investment bank.
Sherborne added its "present intention is to continue its dialogue with Barclays for as long as it appears to be appropriate to do so".
Cian Harty, analyst at Goodbody, said Sherborne's comments "points to no let up from Bramson in his pursuit of shareholder value".
Barclays declined to comment. Last week Barclays chief executive Jes Staley said that while he had met Mr Bramson, he had not revealed his proposals to the bank directly.
A source close to Barclays said that as of last week Mr Bramson had discussed nothing specific with Mr Staley along the lines outlined in Sherborne’s half-year results today.
Mr Staley took a swipe at the activist investor after Barclays’ interim results, in which the bank tripled second quarter profits to £1.9bn.
He hailed an improved start to the year for the investment bank, saying his strategy of firing up the division was “paying dividends”.
Mr Staley also insisted breaking up the unit would be too risky. “We don’t believe that you can pick slices of the business and get out of them without significantly impacting the whole,” he said.
Despite the improved results, this has not fed through to its share price. The stock has fallen 6pc over the year to date despite a short-lived rally in the Spring. Shares in Barclays were up around 1pc this morning.
However FTSE 100 rivals RBS, Lloyds and HSBC are also all down over the period, in part due to concerns over the potential impact of a chaotic Brexit on the economy.
