Page last updated at 07:39 GMT, Monday, 8 June 2009 08:39 UK

Blackrock targets Barclays firm

Barclays headquarters in Canary Wharf

Barclays has confirmed it is in talks with US money management firm Blackrock about the sale of its Barclays Global Investors (BGI) division.

A "number of parties" were interested in the fund management business, it added, saying talks were continuing.

Earlier this year, Barclays got rid of a crucial part of BGI's business when it sold iShares, to CVC Capital Partners for $4.4bn (£2.7bn).

But it can scrap the deal, if it gets a better offer before 18 June.

If this was to happen, it would pay a $175m break-fee to CVC.

Ishares is a unit of BGI, which specializes in exchange-traded funds.

Barclays did not comment on media reports that New York-based BlackRock's bid would value BGI at about $13bn - and that it would pay the UK bank in a mixture of cash and shares.

It is likely to take a minority stake in BlackRock of up to 20% following a sale, reports suggest, but Barclays cited "significant open issues" before any deal was struck.

Bank of New York Mellon are also in talks over BGI, according to US media.

Unlike Lloyds Banking Group and RBS, Barclays has shunned government help, instead choosing to raise money privately, to help it weather the financial crisis.



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FROM OTHER NEWS SITES
Morningstar.com BlackRock Poised To Buy Barclays Unit For $12 Billion-$14 Billion -Source - 7 hrs ago
MENAFN BGI deal would alter money-management landscape - 12 hrs ago
Globe Investor BlackRock eyes Barclays fund unit in 'transformational deal' - 22 hrs ago
TheStreet.com BlackRock May Pay $13B for Barclays Unit - 25 hrs ago



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