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| Blackrock in £8.2bn Barclays deal | Blackrock in £8.2bn Barclays deal |
| (10 minutes later) | |
| Barclays has agreed to sell its fund management division, Barclays Global Investors (BGI) to US money management firm Blackrock for £8.2bn ($13.5bn). | Barclays has agreed to sell its fund management division, Barclays Global Investors (BGI) to US money management firm Blackrock for £8.2bn ($13.5bn). |
| Blackrock is paying a mixture of cash and shares in a deal that will create the world's biggest asset manager. | Blackrock is paying a mixture of cash and shares in a deal that will create the world's biggest asset manager. |
| Scores of Barclays staff, who own 4.5% of BGI, will share in a £365m windfall. | Scores of Barclays staff, who own 4.5% of BGI, will share in a £365m windfall. |
| Unlike Lloyds Banking Group and RBS, Barclays has shunned government help, choosing to raise money privately, to help it weather the financial crisis. | Unlike Lloyds Banking Group and RBS, Barclays has shunned government help, choosing to raise money privately, to help it weather the financial crisis. |
| BlackRock said its takeover of BGI would create a firm with combined assets under management of more than (£1.64 trillion). | |
| Bidding war? | Bidding war? |
| Earlier this year Barclays got rid of a crucial part of BGI's business when it sold iShares, to CVC Capital Partners for $4.4bn (£2.7bn). | Earlier this year Barclays got rid of a crucial part of BGI's business when it sold iShares, to CVC Capital Partners for $4.4bn (£2.7bn). |
| But under the agreement, it could scrap the deal, if it got a better offer before 18 June. | But under the agreement, it could scrap the deal, if it got a better offer before 18 June. |
| It will now have to pay a $175m break fee to CVC - unless CVC decides to come in with a better offer and create a bidding war. | It will now have to pay a $175m break fee to CVC - unless CVC decides to come in with a better offer and create a bidding war. |
| Ishares is a unit of BGI, which specializes in exchange-traded funds. | Ishares is a unit of BGI, which specializes in exchange-traded funds. |