Edward Bramson directs Barclays's investor activism, which finances most of his stake in a loan of $ 1.4bn from the American bank, which has been annoyed by other large shareholders.
Bramson has built a 5.5% stake in Barclays and is trying to force the Board of Directors to opt for a strategy to exclude the Bank's investment securities.
It bought more than half of its ownership through a vehicle made out of Whistle Investors through a "third-party financial institution" loan, based on the latest securities in US securities. The financial institution is Bank of America, said many people on the subject.
According to the so-called "financial equity collar", Bank of America borrowed shares in Barclays, and Mr. Bramson also sold loans through loans.
BofA's role has also been raised by eyebrows, because the rival is financed by the active attacker. A non-bank executive said that he would not extend Mr Bramson's loan, "knighthood agreement" is informal that banks would not have any activist investors to help target competitors.
Likewise, it might be a question of the banking sector that the bank has had to deal with the general banking system, which would emerge at the prices of the sector prices.
Bramson, Barclays and Bank of America said no.
Under the agreement, Mr Bramson took out some "put" and "call" backing "losses", limiting himself to falling below a certain level of shares. The options begin in October, the last contract issued until March 2021.
According to the agreement, people charged Bramson's share of Bank of America's shares in Barclays's share price, which summarized shares of the United Kingdom's shares in shares.
The funded equity collar has become popular in recent years, such as a very comfortable group such as SoftBank, which has a large number of positions in public lending, much more than traditional loans.
However, major barclays shareholders have told the Financial Times that Mr. Bramson's use of so much leverage and collar had not well aligned with other long-term investment interests.
Five investors said Bank of America had a steady coverage of its position that it could have a higher turnover billing and that "bad sounding stock noise" causes unwanted interest.
The shareholder said Mr Bramson used "we did not align" and "leverage" [to amass voting rights] it's doubtful. "
Another high shareholder said that Mr Bramson had put the options he had taken and destroyed the limitations on his problems and made it easier for radicals to pursue a strategy.
They said: "It is clear that there is a dramatic restructuring of the bank if the" dice "root was unsuccessful, would have a much worse material than other investments. [Mr Bramson]. "
And a top-15 shareholder told Bramson about the modus operandi, which allowed him to control himself before the vice president and chief executive, was "very harmful".
"If you want to be an influence, we want to see a fairly high resolution for it," said the shareholder. "The collar does not help his case."
The mess of the use of organizing the Bramson necklace is the newest discussion about the new tool.
Vivendi repeatedly repeated to Elliott to attack the activist attacker, to use a necklace, although last week FT used the organization of the past. HNA also used the collar to build a detailed Deutsche Bank location.