Barclays Gets Other Offers For Its iShares, BGI Businesses
08 June 2009 - 5:10PM
Dow Jones News
U.K. bank Barclays PLC (BCS) said Monday it has received
additional proposals for its iShares business and the broader
Barclays Global Investors unit that owns it, including from
BlackRock Inc. (BLK).
The announcement is potentially a further challenge to CVC
Capital Partners' deal agreed in April to buy iShares for $4.4
billion. The agreement allowed Barclays to shop around for better
offers till the middle of June.
Barclays has said since that it has received other proposals for
iShares and for BGI.
The announcement Monday comes after recent media reports said
BlackRock and Bank of New York Mellon Corp (BK) are racing to buy
BGI.
The Financial Times said on Monday that Bank of New York Mellon
could challenge BlackRock's bid for BGI.
"In assessing such proposals, Barclays has had discussions with
a number of parties, including with BlackRock, about both iShares
and BGI," it said Monday.
Barclays said "the discussions are not yet concluded and there
are a number of significant open issues which could affect the
nature and terms of any transaction."
"There is no certainty that these discussions will result in
Barclays concluding a different transaction than that announced on
April 9 with CVC regarding iShares," it said.
Pensions & Investments on Friday cited a person not directly
involved in the deal as saying that the announcement was likely
"within the next few days."
Another person said that, although CVC would have the option to
counteroffer, its chances of topping the BlackRock offer, said to
be in excess of $10 billion, would be slim.
Company Web site: www.barclays.com
-By Vladimir Guevarra, Dow Jones Newswires. +44 (0) 20 7842
9486, vladimir.guevarra@dowjones.com