June 8, 2009

Barclays to sell global investment unit

British bank Barclays said it was close to selling Barclays Global Investors to BlackRock for an estimated $13 billion.

The deal could turn on Barclays' discussions with Bank of New York Mellon, which could derail the deal with a counter-bid, The Daily Telegraph reported Monday.

The deal with BlackRock values the 4.5 percent stake in the company held by BGI employees at $585 million.

If the deal goes through, shares owned by President and Chief Executive Officer of Barclays Capital Bob Diamond would be worth an estimated $29 million.

The deal with BlackRock involves a $3 billion investment by Middle Eastern investors, including the Qatar Investment Authority, the investment firm run by the Abu Dhabi government and Kuwait's KIO group.

The Middle Eastern contingent would own 12 percent of BGI