Barclays and BlackRock today conceded they’re in talks about a potential purchase by BlackRock of BGI, but both sides warned that an agreement isn’t a done deal.
Sources who declined to be named cited BNY Mellon as BlackRock’s main competition for BGI. With two “great bids,” it’s “too close to call,” said one source.
In a statement early today, Barclays said it “has had discussions with a number of parties, including with BlackRock” about both BGI as well as BGI’s iShares exchange-traded-fund division, but a number of “significant open issues” remain, and nothing is certain about the outcome.
BlackRock last week was deemed the likely winner of BGI, and today another source familiar with BGI who declined to be identified said the New York-based bond giant should still be seen as the better fit with the San Francisco-based quant shop.
Asked about reports that BNY Mellon is bidding for BGI, BNY Mellon spokesman Mike Dunn said his firm doesn’t comment on speculation.
A winning bid by either BlackRock or BNY Mellon would trump the agreement Barclays announced in April to sell iShares to CVC Capital Partners, a New York-based private equity firm, for slightly less than $4.5 billion. That agreement called for a 45-business-day “go-shop” period during which Barclays could entertain competing bids.
