Report: BlackRock, partially owned by PNC, leading contender for BGI
Investment group BlackRock Inc., one-third owned by PNC Financial Services Group Inc., is a leading contender for asset management firm Barclays Global Investors, according to a British newspaper.
The Sunday Telegraph said that New York-based BlackRock's bid would value BGI at about $13 billion and that a deal could be announced as early as next week. BlackRock would pay Barclays PLC a mixture of cash and shares for BGI, leaving the British bank with up to as much as a 20 percent stake in the newly created money management mammoth, the paper said.
The report said that a final price for BGI's sale was still being worked out. It noted that another bid, possibly from Bank of New York Mellon Corp., could still trump BlackRock's offer.
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 GBI'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.