BlackRock's Buy of Barclays Unit Nears

BlackRock is expected to pay about $13 billion for the asset-management unit of Barclays, and Barclays could retain about a 20% stake, reports say.
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BlackRock's

(BLK) - Get Report

expected deal to buy Barclays Global Investors from U.K. bank

Barclays

(BCS) - Get Report

is likely to be announced as early as Thursday, the

Wall Street Journal

reports, citing people close to the matter.

Money manager BlackRock is expected to pay about $13 billion for the asset-management unit, and Barclays could retain about a 20% stake, the

Journal

and other reports this week have said.

Barclays could get a seat on BlackRock's board as part of the deal, the

Journal

reports. BlackRock is expected to fund a portion of the purchase from sovereign funds in the Middle East.

Combined with BGI, BlackRock would be the world's largest money manager, with roughly $2.8 trillion in assets under management, according to the

Journal

.

Barclays on Monday confirmed it has held talks with BlackRock for the BGI business, but also said it has received proposals for BGI and its iShares business from a number of parties.

Barclays reached an agreement earlier this year to sell iShares, which specializes in exchange-traded funds, to CVC Capital Partners for $4.4 billion. But 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.