The chances of a shareholder revolt against Barclays' £7.3 billion capital-raising plan were kept alive today as Pirc, the corporate governance campaign group, urged its members to vote against the terms of the deal.

Pirc, which last week indicated its opposition to the deal, said today that it was unhappy that the terms being offered by the high street bank would significantly dilute existing shareholders.

It said Barclays' current owners should be offered the chance to take part alongside new investors on the same terms.

While Pirc said it was unlikely that Barclays would fail in its fundraising effort, Pirc said investors should send a warning shot across the bank's bows that its approach to its financing needs was misplaced.

Alan McDougall, Pirc's managing director, said: "At least a part of the company's investor base should send a clear, unequivocal message that they do not think this was a good solution to the bank's current situation, and that it has come at a heavy price for existing shareholders."

However, Pirc's intervention comes as shareholder opposition to the Barclays move appeared to be on the wane.

Investors including Legal & General and Aviva, initially hostile after being denied equal terms, or pre-emption rights, seem poised to vote in favour of the fundraising. Shareholders meet next Monday.

Barclays is shoring up its balance sheet by offering new shares and other securities to investors led by the Qatar Investment Authority and Sheikh Mansour Bin Zayed al-Nahyan, a member of the Abu Dhabi Royal Family and the new owner of Manchester City Football Club.

The capital plan will mean that Middle Eastern investors being offered preferential terms could end up owning about a third of Barclays, which as a result will be able to avoid going to the UK Government for emergency funds.

As part of the proposals, Sheikh Mansour will inject up to £3.5 billion in Barclays for a stake of up to 16.3 per cent.

The Qatar Investment Authority (QIA) will increase its existing stake from 6.2 per cent to 12.7 per cent for up to £2 billion.

Sheikh Hamad bin Jassim bin Jabr al-Thani, the Qatari Prime Minister, will pay £300 million to increase his holding to up to 2.8 per cent.

Barclays shareholders have been particularly irked by the bank's plan to issue £3 billion of tax-deductible securities that pay a coupon of 14 per cent for ten years as well as warrants that give Sheikh Mansour and the QIA the right to buy shares for 198p.

Institutions were offered £1.5 billion of mandatorily convertible notes that pay interest of 9.75 per cent and must be converted to shares by the end of next June at 153p.

Barclays initially indicated its willingness to tweak the fundraising terms, although that is thought to have met fierce resistance from the Qatari camp.

A meeting on Friday between the bank and representatives of the Association of British Insurers failed to yield a compromise that was acceptable to all concerned.

Barclays shares lost 4.7 per cent, down 6.8p at 152.3p.

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