LONDON, Oct 8 (Reuters) - One of the Middle East investors who pumped billions of pounds into Barclays has effectively sold a chunk more shares in the British bank, sending its shares lower.
Abu Dhabi's exercised 131.6 million warrants in the bank, equivalent to a 1.1 percent stake, and simultaneously entered into a complex hedging arrangement with Nomura, it said in a statement after Thursday's close. Nomura simultaneously executed a market placing of 220 million shares, the statement said.
By 0743 GMT Barclays shares were down 2.4 percent at 296.75 pence.
"Abu Dhabi still have upside exposure in the stock, but they're taking some money off the table," said Manoj Ladwa, senior trader at ETX Capital.
Abu Dhabi committed to pump up to 4.75 billion pounds ($7.6 billion) into Barclays two years ago as part of a controversial fundraising that allowed Barclays to avoid taking taxpayer funds, but was criticised for being too generous to the Middle East investors.
It sold instruments equivalent to an 11 percent stake in the bank in June 2009, making $2.5 billion from the investment, but still held a stake. (Reporting by Steve Slater and Tricia Wright; Editing by Mike Nesbit) ($1=.6274 pounds)