Barclays linked to possible BGI sale

Banking giant Barclays is in talks over a potential $10bn (€7.35bn) deal to sell its Barclays Global Investors asset management arm, it was reported today.

The group is said to be in negotiations with possible bidders including US fund manager BlackRock over BGI – one of its most valuable assets – according to the Financial Times.

Barclays is already offloading its iShares fund management business, which is the most profitable part of BGI, in an agreed £3bn (€3.35bn) sale to CVC Capital Partners.

But under a “go-shop” clause, Barclays has retained the right to try and secure a higher bid within 45 days, which could also see it sell the entire BGI business.

CVC must be given the chance to match any higher offer, but if it declines it will receive a £175m (€195m) break fee.

It was reported last weekend BC Partners had entered the fray with a proposed rival £3.5bn (€3.9bn) bid, although Barclays has not confirmed the offer and has until June 18 under the clause.