BlackRock, Inc., announced on June 11 that it had agreed to pay Barclays plc $13.5 billion in cash and stock for the U.K. bank’s asset management unit, San Francisco–based Barclays Global Investors. Barclays stands to get $6.6 billion in cash as well as a 19.9 percent stake in BlackRock, a New York–based money manager that will be renamed BlackRock Global Investors. The money will help Barclays boost its capital ratios and thus avoid having to accept money from the British government in the wake of the credit crisis.
As part of the deal BlackRock will get iShares, Inc., a Barclays Global Investors unit that Barclays agreed to sell to CVC Capital Partners Limited on April 9 for $4.4 billion. Barclays’s agreement with CVC allowed the seller to cancel the iShares deal if it got an offer for all of BGI. Barclays will pay CVC $175 million to walk from the iShares deal, which would have been the largest leveraged buyout since the start of last year.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
