CVC Unlikely To Make Counter Offer For Barclays' BGI - Source
12 June 2009 - 7:57PM
Dow Jones News
Private equity firm CVC Capital Partners is unlikely to match
BlackRock Inc.'s (BLK) $13.5 billion (GBP8.2 billion) agreed offer
for Barclays Global Investors, or BGI, a person familiar with the
company said Friday.
Barclays PLC (BCS) had previously agreed to sell the BGI unit
iShares to CVC for GBP3 billion. The terms of the deal allowed
Barclays to shop around for a better offer until June 18.
In the meantime, several investors expressed interest in iShares
alone and in BGI, its parent division.
Barclays announced the cash and shares deal Friday in terms of
which it gets a 19.9% interest in BlackRock and GBP4 billion in
cash.
The deal is part of Barclays' ongoing strategy to repair its
balance sheet in the wake of the financial crisis and avoid turning
to the U.K. government for support.
If the BlackRock deal goes ahead, Barclays said it will add 150
basis points to its core Tier 1 ratio, lifting it to a pro forma 8%
at the end of 2008. The bank has maintained its independence, while
local rivals Royal Bank of Scotland Group PLC (RBS) and Lloyds
Banking Group (LYG) are now partly state-owned.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241;
marietta.cauchi@dowjones.com