Private equity firm CVC Capital Partners has agreed to buy Barclays’ iShares exchange-traded fund business, and may be willing to sell its entire asset management unit, according to reports.
Under the deal with CVC, Barclays has until June 18 to find a better offer for iShares, or an offer for Barclays Global Investors as a whole, according to The Sunday Telegraph. As part of the so-called “go-shop” clause, Barclays “has indicated its willingness to listen to offers for Barclays Global Investors.”
If no better deal is found, CVC gets iShares for £3 billion (US$4.42 billion).
According to The Telegraph, any offer for BGI would have to be at least £8 billion (US$11.8 billion). San Francisco-based BGI manages more than £1 trillion (US$1.47 trillion), and is the 10th-largest hedge fund manager in the world, according to Absolute Return magazine, with $17 billion in assets under management.