BlackRock on verge of BGI deal
MONEY manager BlackRock’s $13bn (£7.8bn) bid to take over Barclays Global Investors (BGI) could be wrapped up as early as today, with advisers working around the clock to put the final seal on the tie-up.
The US firm will swallow BGI in a cash-plus-shares deal, giving Barclays a 20 per cent stake in what will be the world’s largest asset manager, with about $3 trillion under management.
Middle Eastern funds, including the Kuwait Investment Authority and the Qatar Investment Authority will provide BlackRock with around $3bn in financing in return for a combined equity stake of up to 15 per cent.
The deal will also hand Barclays two seats on the board of the new entity, one of which will be occupied by the bank’s president Bob Diamond, who stands to pick up $20m from the deal due to his shareholding in BGI.
And yesterday it emerged that Credit Suisse, which advises Barclays and Lazard, which is being consulted by BlackRock, are in line for fees worth $41m, according to an estimate from New York-based consultancy Freeman & Co.
Amanda Staveley, the Middle Eastern power broker, is expected to earn more than £40m for herself and PCP Partners, the private equity and advisory firm she heads, by advising the Gulf-based investors.