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Barclays Gets Proposals for BGI, iShares

Barclays confirmed Monday it is holding talks with BlackRock for its BGI business but the talks aren't exclusive.

Updated from 2:33 a.m. EDT


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confirmed Monday it has held talks with


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for its Barclays Global Investors business but also said it has received proposals for BGI and its iShares business from a number of parties.

In a statement Monday, the U.K. bank said the discussions aren't yet concluded and "there are a number of significant open issues which could affect the nature and terms of any transaction."

Reports said Barclays was expected to decide this week on the buyer for BGI. The

Financial Times

reported the bank was in talks Sunday with BlackRock about taking over BGI, but

Bank of New York Mellon

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was looking to step in if a deal isn't reached, a report says.

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If BlackRock did succeed, people briefed on the deal said Barclays was likely to take a stake of up to 20% in BlackRock, a U.S. money manager, the

Financial Times


The newspaper reports that Larry Fink, BlackRock's CEO, last week was understood to have visited the Middle East to arrange possible commitments to help fund the deal from sovereign wealth funds.

BlackRock is considered the most probable buyer, but if it fails to come up with an attractive price within the next few days Bank of New York Mellon could step in, according to the

Financial Times



Sunday Telegraph

reports that BlackRock's bid would value BGI at about $13 billion.

Barclays jettisoned a crucial part of BGI's business earlier this year when it sold iShares, a unit of the company which specializes in exchange-traded funds, to CVC Capital Partners for $4.4 billion. The San Francisco-based iShares accounts for more than half of BGI's profits. However a "go shop" clause in the agreement gives Barclays until June 18 to get a better deal for iShares or BGI and pay a $175 million break-up fee to CVC.

Barclays said Monday there's no certainty the talks it's holding with other parties will result in a different agreement than the one reached with CVC.

Barclays said it will provide an update no later than June 19.

In a separate announcement, BlackRock also said there was no certainty of reaching a deal.

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