Barclays Gets Other Offers For Its iShares, BGI Ops

U.K. bank Barclays PLC (BCS) said Monday it has received additional proposals for its iShares business and the broader Barclays Global Investors unit that owns it, including from BlackRock Inc. The announcement is potentially a further challenge to CVC Capital Partners' deal agreed in April to buy iShares for $4.4 billion. The agreement allowed Barclays to shop around for better offers till the middle of June.

Barclays has said since that it has received other proposals for iShares and for BGI. The announcement Monday comes after recent media reports said BlackRock and Bank of New York Mellon Corp (BK) are racing to buy BGI. The Financial Times said on Monday that BNY Mellon could challenge BlackRock's bid for BGI.

Barclays has received new interest from both trade and private equity buyers for iShares, as it seeks a higher offer allowed by a “go shop” clause in the CVC deal.

Private equity firm BC Partners has bid 3.5 billion pounds for the business, according to a newspaper report this month, while Apax Partners and Hellman & Friedman are seen as less likely to be still in the race.

Barclays owes CVC a $175 million break-up fee if it sells iShares to another bidder.

BGI, the world’s biggest fund manager, is also included in the “go shop” clause, giving potential suitors a closer look at its business, because it shares some businesses with iShares, such as its stock lending business.

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