BlackRock buys Barclays GFI for 13.5 bln dollarsUS money manager BlackRock bought Barclays Global Investors Barclays Global Investors is a subsidiary of British-based Barclays Bank which is in the investment management industry. It is the largest corporate money manager in the world, with over £936 billion (US$1.77 trillion) under management as of March 2006[1]. , the investment arm of British bank Barclays, for 13.5 billion dollars, BlackRock said in a statement. The purchase -- including BGI's market-leading ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). platform, iShares -- the New York-based investment group said, would create a firm managing assets worth some 2.7 trillion dollars. In the deal, BlackRock would acquire BGI BGI Barclays Global Investors BGI Bainbridge Graduate Institute BGI Bureau Gravimétrique International BGI Borland Graphic Interface (File Name Extension) BGI Bridgetown, Barbados - Grantley Adams International for 6.6 billion dollars cash and 37.8 million shares of common and common equivalents. "The shares will represent a 4.9 percent voting interest Voting interest in business and accounting is a percentage of voting stock owned. This notion is different from economic interest that refers to a percentage of all the equity issued, including preferred stock, warrants, and so on. and an aggregate 19.9 percent economic interest in the combined firm, which will be renamed BlackRock Global Investors," the statement read. "The combination of BlackRock and BGI would bring together market leaders in active and index strategies to create the preeminent asset management firm operating under the name BlackRock Global Investors ("BlackRock")," the company said. The transaction "would create an independent and fully integrated asset management firm with combined assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. of over 2.7 trillion dollars." The transaction is still subject however to approval by Barclays shareholders, client consents, regulatory approvals and customary conditions, BlackRock said. Barclays in April agreed to sell iShares to private equity group CVC Capital Partners CVC Capital Partners is a European private equity firm. CVC was founded in 1981 as the European private equity arm of Citigroup, but after a buyout in 1993 it is owned by its management. In 1999, CVC established CVC Asia Pacific, which is a joint venture with Citigroup. for 4.4 billion dollars to help the bank avoid having to join a government insurance scheme for risky assets. However Barclays has the right to break the deal and sell to a third party up until late June. The firm's products "will include equities, fixed income, cash management and alternatives, and will offer clients diversified access to global markets through separate accounts, common trust funds, mutual funds, ETFs, hedge funds, and closed-end funds," the statement read. 
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion