View more on these topics

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.”

Recommended

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.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com