Report: Barclays facing $110m lawsuit

2 December 2011

A major UK bank is facing legal action over the alleged misuse of confidential data during a takeover process last year, it has emerged.

Barclays is set to be issued with a lawsuit valued at €82 million ($110 million) by CF Partners in London on the basis that it wrongly facilitated information from a prospective client when finalising an acquisition, the Financial Times reports.

CF Partners claims it consulted the lender in 2008 to see if it could offer the finance for a transaction to purchase Swedish carbon trading firm Tricorona.

However, when these talks stalled, the group believes the bank used the background work on the company it had put together to launch its own takeover bid.

"CF Partners provided Barclays with a single, composite piece of information, namely the fact that Tricorona was an attractive and available takeover/purchase prospect," its High Court writ stated.

Earlier this week, Barclays was one of 15 major global financiers to have its credit rating cut by Standard & Poor's.

By Gary Cooper

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