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Monday, March 16, 2009|
Barclays Eyes Selling its Shares
Barclays hired UK investment bank J.P. Morgan Cazenove to help find a buyer for its iShares business, The Wall Street Journal reports.
Part of San Francisco-based Barclays Global Investors, iShares is the largest ETF player and according to an unnamed Journal source, it could fetch £4 billion ($5.6 billion). The purchase price would represent 2.19 percent of iShares' assets under management at the end of 2008.
The iShares business, led by Lee Kranefuss, commands 47.9 percent of the ETF market with $254.7 billion in assets at the close of 2008, according to Cerulli Associates data.
Some analysts value the whole of BGI at £5 billion ($7.04 billion), the Journal reports.
In a statement posted on its Web site on Monday (see the complete statement after the chart below), Barclays confirmed it has held talks with "a number of potentially interested parties" regarding the potential sale of the iShares business.
"Barclays notes press comment regarding the potential disposal of iShares and confirms that it has held discussions with a number of potentially interested parties as part of its practice of regularly reviewing the group's portfolio of businesses," the statement read. "No decision regarding the disposal of any business has been taken by the board of Barclays."
iShares' rivals in the business include State Street Global Advisors, which operates the SPDR family and holds a 30.2 percent share of the market; Vanguard, with an 8.6 percent market share; Invesco PowerShares, which has a 4.1 percent share and ProFunds, which has 3.9 percent, according to Cerulli data.
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Statement from Barclays
Printed from: MFWire.com/story.asp?s=21012
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