Barclays shares up as L&G backs fundraising plan

LONDON (Reuters) - Barclays (BARC.L) shares rose over 3 percent early on Friday after one of the bank's top investors said it would back its fundraising plan even though it does not like the structure of the controversial deal.

Legal & General Investment Management (LGIM), part of insurer Legal & General (LGEN.L), said late on Thursday it would vote in favour of Barclays' plan to raise 7 billion pounds, including over 5 billion from Middle East investors.

By 8.30 a.m., Barclays shares were up 3.2 percent at 131.8 pence, after rising as high as 133.4p.

Barclays has faced a backlash from shareholders angry that investors in Qatar and Abu Dhabi are buying complex capital instruments on more attractive terms than existing investors have been offered.

LGIM said it regretted the plan but said it will vote in favour. "We recognise that in these exceptional circumstances, a failure to secure this capital could lead to a material (deterioration) in shareholder value," the investor said.

LGIM had been prepared to vote against the deal, according to reports last week.

Barclays investors are due to vote on the deal on Monday. The bank is expected to get approval, but could see a high level of abstentions, analysts have said.

(Reporting by Steve Slater; Editing by David Holmes)