Barclays Plc is reportedly in talks about selling its Barclays Global Investors (BGI) asset management arm for around $13.21 billion, according to a media reports.
Potential bidders include BlackRock and Bank of New York Mellon (BNY).
BlackRock’s market value is $24.31 billion, while BNY’s market capitalisation is $43.36 billion, data showed.
In Australia, BGI offers domestic and international funds, diversified strategies, indexed funds and an alternative product.
Barclays agreed to sell BGI’s exchange-traded funds (ETF) unit iShares to private equity firm CVC Capital Partners for US$4.4 billion last month.
But within the sale there was a so-called “go-shop” provision whereby Barclays can seek alternative buyers for iShares until 18 June, according to the reports.
If that happens, Barclays must pay a US$175 million break-up fee to CVC if it selects an alternative bid.
One report also stated that private equity groups BC Partners and Hellman & Friedman are considering a counter-bid for iShares.
BlackRock chief executive Laurence Fink said in April that he would be interested in expanding the firm’s position in retail mutual funds through acquisitions, according to one report.
A BlackRock spokesperson said the firm’s policy is that it does not comment on market rumour or speculation. A BGI spokesperson did not return comment prior to press deadline.
BGI had $2.9 trillion in assets under management as at January 2008. BlackRock manages nearly $1.7 trillion and BNY Mellon manages $1.22 trillion in assets.
