Barclays receives further offers for iShares

| May 11, 2009 | 0 Comments
”Barclays

Barclays has received further offers for its iShares business despite agreeing to sell off the division to private equity firm, CVC Capital Partners, last month for £3 billion.

However, under the terms of the agreement, Barclays had the right to seek a higher bidder within a 45 day period.

As a result, private equity groups Apax, BC Partners and Hellman & Friedman are all looking to bid higher than the £3 billion offered by CVC.

Should Barclays accept a higher offer during the 45 day period, it would have to pay a penalty of £120 million to CVC, while CVC would have to pay £34 million, should it choose to withdraw its offer.

It is unknown whether CVC is willing to match the higher offers. Barclays has declined to comment.

The sale of its iShares division is to raise money, unlike its rivals it has so far turned down financial help from the Government, opting to go it alone last year by raising £7 billion from investors in Qatar and Abu Dhabi.

Furthermore, the bank has chosen not to participate in the Government‘s asset protection scheme, which insures against losses arising from toxic assets.

Last week, Barclays reported a 15% rise in pre-tax profits for the first three months of the year despite the financial maelstrom.

Tags: , CVC Capital Partners, fundraising, iShares, ,


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