BlackRock deal for BGI near

BlackRock is likely to announce an agreement to buy Barclays Global Investors from Barclays, creating the world’s biggest institutional money manager, according to sources who declined to be named.
JUN 05, 2009
BlackRock is likely to announce an agreement to buy Barclays Global Investors from Barclays, creating the world’s biggest institutional money manager, according to sources who declined to be named. A source not directly involved in the deal said the announcement is likely within the next few days. The deal would trump the proposed $4.5 billion acquisition of BGI’s iShares exchange-traded fund business by private equity firm CVC, announced in April. One source who declined to be named said while CVC would have the option to make a counterbid, its chances of topping a BlackRock offer — reported to be in excess of $10 billion for all of BGI — would be slim. Bob Diamond, the chairman of BGI, plans to join the board of BlackRock if the deal goes through, according to a report Friday on the Financial Times' website. A BlackRock Inc. of New York spokeswoman and BGI of San Francisco spokesman Lance Berg both declined to comment. The deal would create a firm with more than $2.2 trillion in institutional assets worldwide. Douglas Appell is a reporter for sister publication Pension & investments.

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