Barclays faces £70m lawsuit

Barclays is facing a £70m lawsuit over claims it misused confidential information from a potential client to seal a takeover deal, according to reports.

The Financial Times (FT) reports that UK advisory and trading firm CF Partners came to Barclays in September 2008 for help with financing a potential deal with Swedish carbon trading company Tricorona.

In a lawsuit filed in the High Court last month, CF alleges that when the deal stalled during the financial crisis, Barclays used CF’s work on the value of Tricorona’s carbon credits portfolio to pursue its own deal.

Barclays took an 85% stake in Tricorona for £98m in July 2010.

The claim says: “CF Partners provided Barclays with a single, composite piece of information, namely the fact that Tricorona was an attractive and available takeover/purchase prospect.”

CF says it remained committed to pursuing a deal, though did not sign a formal engagement letter with Barclays.

Barclays says the claim is “without merit” and will be “vigorously contested”.

Barclays told the FT: “Barclays had no contractual relationship with CF Partners and did not enter into any advisory mandate.”