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Barclays has today sold its fund management arm, Barclays Global Investors (BGI) to US money management giant BlackRock for £8.2 billion, creating the world's biggest asset manager.
The deal - which BlackRock is paying for in cash and shares - gives scores of Barclays staff a share of a £365 million windfall, since around 200 Barclays employees own 4.5% of BGI. Barclays president Bob Diamond is set to receive more than £22 million for his own stake in the fund management business.
The British bank set the takeover ball rolling when it put iShares - the investment business that specialises in exchange traded funds and gives easy access to other kinds of investments - on the market three months ago. Barclays had agreed to sell iShares to CVC Capital Partners for £2.7 billion, but that included a break out clause if it received a better offer before 18 June.
Since BlackRock's takeover bid of BGI includes the iShares business, CVC must now decide in the next five working days whether it wants to match BlackRock's offer or walk away from the deal.
