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Barclays Looks To Sell iShares, In Talks Over State Aid
Rachel Walsh
16 March 2009
Barclays is approaching potential buyers about the sale of part of its ETF business, iShares, in an effort to raise between £3 billion and £5 billion, while it is also talking to the UK government about potentially receiving state aid. The move to try to sell iShares could help the bank avoid joining the
Potential bidders could include US asset managers which are attracted to the comparatively low transactional costs of exchange-trading funds, reports said. But this has also increased demand for the product and investors could call into question the wisdom of Barclays selling a growing business now. In a statement issued to the London Stock Exchange today, Barclays said "no decision regarding the disposal of any business has been taken by the board of Barclays" but confirmed that it had been holding talks with a number of interested parties in a deal for iShares. "Barclays businesses continue to perform well and have had a strong start to 2009," its statement continued. The bank confirmed that it is in talks with the UK government's Treasury department and the Financial Services Authority, the UK regulator, over its "potential participation" in the UK government's Asset Protection Scheme for financial institutions. Media reports said iShares business accounts for about a quarter of Barclays Global Investors, the bank’s global asset management division that has £1,000 billion under management.