The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Barclays in BGI talks, $12 billion BlackRock deal seen | Deals | Reuters

Barclays Plc BARC.L is in talks to sell Barclays Global Investors BGI, the British bank said on Monday, with U.S. fund manager BlackRock the frontrunner to land the asset manager for about $12 billion.

BlackRock BLK.N and Bank of New York Mellon BK.N are both in talks to buy BGI in a deal that might come early this week, people familiar with the matter said.

The complex deal could see Barclays take a stake of up to 20 percent in the enlarged asset manager, according to the sources, who asked not to be named as the talks are confidential.

“It sounds like a deal is coming and the price is undeniably attractive,” said Ian Gordon, analyst at Exane BNP Paribas.

San Francisco-based BGI is the world’s biggest fund manager with $1.5 trillion in assets under management and would swell BlackRock’s assets to $2.8 trillion, double the amount managed by nearest rival State Street (STT.N).

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