Abu Dhabi's Sheikh Mansour sells 7% stake in Barclays bank

LONDON (AFP) - An Abu Dhabi sheikh who helped British bank Barclays avoid a state bailout during the global financial crisis has sold his stake.

Sheikh Mansour, who injected 3.5 billion pounds (S$6.7 billion) into Barclays in late 2008, offloaded his 7 per cent share last month, according to a recent statement that came to the notice of markets only on Friday. The disposal probably generated a huge profit because Barclays shares had surged by more than 60 per cent since the deal was made almost five years ago.

In October 2008, Barclays raised a total of 7 billion pounds from both Sheikh Mansour and the Gulf state of Qatar's sovereign wealth fund. The British lender secured the capital raising as an alternative to accepting a bailout from the British government.

The 2008 rescue deal was brokered by former Barclays president Bob Diamond, who went on to become chief executive in 2010 but was forced to resign last year over the Libor rate-rigging scandal.

Sheikh Mansour owns English Premiership football club Manchester City.