Updated from 2:37 a.m. EDTBritish bank Barclays ( BCS) is in exclusive talks to sell its exchange-traded funds business iShares to private equity firm CVC Capital Partners for around 3 billion pounds $4.3 billion, a report said Tuesday. The U.K. Daily Telegraph newspaper reports the sale doesn't include iShares' securities lending business that analysts say is worth about 1 billion pounds. Barclays also will receive warrants that convert into a stake of as much as 20% of iShares if certain performance criteria are met. The newspaper reports banking sources as saying the deal is expected to be completed by the end of the week. Earlier reports had Barclays receiving three bids for iShares from private equity groups. The bids of about $5.5 billion for the manager of exchange-traded funds came from Bain Capital and Colony Capital, Hellman & Friedman and Apax Partners, and CVC Capital Partners. Other potential bidders, including Goldman Sachs ( GS), dropped out over the weekend, the Financial Times reported. The bidders were asked to resubmit their bids Monday morning after their initial offers on Friday failed to meet Barclays' target valuation for iShares of $6.5 billion. On Monday, Barclays said it wouldn't take part in the British government's program to insure so-called toxic assets, raising fears it will need to raise billions of pounds elsewhere.