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Barclays still open to bids after iShares £3bn deal

Barclays has agreed to sell its exchange traded funds arm iShares to private equity firm CVC Partners for £3bn, although it is still listening to bids for the whole of its asset management arm, including iShares.

The bank said the deal with CVC will provide it with a net gain of £1.5bn taking into consideration goodwill of £1bn from organic growth of the business over the last five years. Barclays has agreed to lend CVC £2.1bn to buy the business.

A clause in the deal allows Barclays to solicit or consider bids for the whole of its asset management arm Barclays Global Investors, which includes iShares, until June 18.

Barclays has an option to receive 20 per cent of the value of iShares in cash from a future increase in value of the business.

Barclays group chief executive John Varley said: “Barclays’ shareholders will benefit from a reinforcement of our capital base and an ongoing commercial relationship with iShares.”


The art of due diligence

In this maelstrom of invective towards bankers, I have to admit to some mixed emotions. Back in the 1980s, a young partner in a national accountancy practice helped me avoid one bad purchase and what would have been a disastrous sale of my firm. We stayed in touch and met up from time to time when he was in town dealing with a major liquidation.


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