Barclays confirms BlackRock talks

Barclays today confirmed talks with US giant BlackRock over the sale of its fund management arm but said it had to resolve “significant open issues” before any deal.

The bank – close to a deal said to value its Barclays Global Investors division at $13bn – is likely to take a minority stake in BlackRock of up to 20% following a sale.

The issues to finalise are likely to include the price, competition considerations and the future relationship between the two companies.

The sale of BGI will net a windfall for around 200 Barclays staff who own 4.5% of the business – valued at close to $600m under the rumoured price.

Barclays president Bob Diamond could see his personal stake valued at more than $20m.