In a statement to the market this afternoon Barclays confirmed that CVC Capital Partners was the preferred bidder. It said: “If these negotiations reach a satisfactory conclusion, it would lead to a sale of Barclays iShares business without the attributable securities lending business.”
Reports suggest the estimated £3bn deal will see the bank retain a 20 per cent stake in the business as well as its securities lending business which is valued at around £1bn.
A number of players have been linked to a possible deal including Hellman & Friedman, Bain Capital and Goldman Sachs.
Reports say the deal is expected to complete by the end of the week. The bank says a further announcement will be made in due course.
At 4.12pm, Barclays shares were up 0.74 per cent to 150.20p.