Barclays is in talks to sell Barclays Global Investors (BGI), the British bank said on to day, with US fund manager BlackRock the frontrunner to land the asset manager, according to people familiar with the matter.
BlackRock and Bank of New York Mellon are both in talks to buy BGI in a deal that could be worth about $12 billion and might come early this week, the sources said, who asked not to be named as the talks are confidential.
The deal could see Barclays take a stake of up to 20 per cent in the enlarged asset manager in a deal structured similar to its planned sale of iShares, the sources said.
Barclays said today it had received proposals for BGI and iShares from a number of parties, including BlackRock, and was continuing talks. There were “a number of significant open issues which could affect the nature and terms of any transaction,” it said.
Barclays agreed to sell iShares, which is part of BGI, to buy-out house CVC for £3 billion in April, but a “go shop” clause allows it to seek higher offers until June 18th.
Shares in Barclays were seen opening trade today up 2.1 per cent, a trader said ahead of the London market opening at 7am. The shares closed on Friday at 285 pence.
Reuters